Air Canada (ACDVF) (TSX: AC) today announced the final results of its cash tender offer previously announced on November 14, 2022 (the "Offer") to purchase for cancellation up to US$300 million aggregate principal amount of its outstanding 4.000% Convertible Senior Notes due July 1, 2025 (CUSIP No. 008911 BF5) (the "Notes"), which expired on December 19, 2022.
An aggregate of US$266,053,000 principal amount of Notes was validly deposited under the Offer and not withdrawn prior to its expiration. Air Canada has taken up and accepted for purchase and cancellation all such deposited Notes at a purchase price of US$1,220 in cash per US$1,000 principal amount of Notes, plus a cash payment in respect of all accrued and unpaid interest outstanding on such Notes up to, but excluding, the date of take-up of the Notes, for total consideration of about US$329,580,544. Payment for such Notes taken up and purchased by Air Canada under the Offer is expected to be made on December 20, 2022, but in any event, by no later than December 22, 2022, in accordance with the terms and conditions of the Offer as detailed in the offer to purchase, its accompanying issuer bid circular and the related letter of transmittal. Air Canada did not make the Offer conditional on any minimum principal amount of Notes being deposited, preserving optionality for holders while allowing Air Canada to further deleverage its balance sheet.
After giving effect to the purchase and cancellation of the Notes taken up under the Offer, US$274,153,000 aggregate principal amount of Notes will remain outstanding.
Morgan Stanley is acting as dealer manager to Air Canada in connection with the Offer. Any questions or requests for information may be directed to Morgan Stanley at 855-483-0952 (toll-free).