Air Canada Launches Share Offering

Air Canada is launching a C$500 million share offering and a concurrent marketed $400 private placement of convertible senior unsecured notes as it seeks to shore up its balance sheet in the face of COVID 19.

Air Canada intends to grant the underwriters an option to purchase up to an additional 15% of the offering, exercisable in whole or in part at any time until 30 days after closing of the Share Offering and up to an additional 15% of the convertible notes at any time until 13 days after closing.

The convertible notes will be senior unsecured and will accrue interest payable semi-annually in arrears and will mature on July 1, 2025, unless earlier repurchased, redeemed or converted. The convertible notes will be convertible into cash or shares.

TD Securities, JPMorgan Securities Canada and Citigroup Global Markets Canada are acting as joint active book-running managers for the share offering and JP Morgan Securities TD Securities and Citigroup Global Markets Canada are acting as joint active book-running managers for the convertible notes.

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