MIAMI – On, June 2, 2020, Air Canada (AC) announced the closing of its previously announced underwritten marketed public offering of 35,420,000 Class A Variable Voting Shares and/or Class B Voting Shares of the Company at a public price of C$16.25 per Share.

For aggregate gross proceeds of C$575,575,000, included is the exercise in full by the underwriters of their over-allotment option to purchase up to 4,620,000 Shares for additional gross proceeds of C$75,075,000.

Its concurrent marketed private placement of convertible senior unsecured notes due in 2025 for aggregate gross proceeds of US$747,500,000 includes the exercise in full by the initial purchasers of their over-allotment option to purchase up to US$97,500,000 principal amount of Convertible Notes.

Increasing Air Canada cash position

The Company will use the net proceeds from the Offerings to supplement the Company’s working capital and other general corporate purposes. The net proceeds from the Offerings will serve to increase AC’s cash position.

This will allow for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the COVID-19 pandemic.

Statements from the CEO and CFO of the Company

Michael Rousseau (62), Deputy Chief Executive Officer and Chief Financial Officer of the Company, said:

“Coming into 2020, AC enjoyed a very strong liquidity position, before the COVID-19 pandemic and government-imposed quarantines and border restrictions destroyed demand and depleted cash.”

“This important financing will allow us to keep our strong relative position and better manage debt leverage and risk as government restrictions are lifted and the market recovers.”

“The positive reaction from the public markets is a strong endorsement of the strength of our franchise,” concluded Rousseau.

The shares offered

The Shares offered in the Offering and the Convertible Notes and Class A Variable Voting Shares and/or Class B Voting Shares of the Company issuable upon conversion of the Convertible Notes have not been, and will not be, registered under the U.S. Securities Act.

Also, they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws.

PHOTO: Andrew H. Cline.

About Air Canada

The carrier is the Canada’s largest domestic and international airline. The flag carrier is among the 20 largest airlines in the world and in 2019 served over 51m customers. AC is a founding member of the Star Alliance, the world’s most comprehensive air transportation network.

Additionally, AC is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax, which also named AC the 2019 Best Airline in North America.