MONTREAL, June 2, 2017 /CNW/ - Air Canada announced today that it has completed the repricing of its U.S.$1.1 billion senior secured credit facility, reducing the interest rate by 50 basis points, to an interest rate of 225 basis points over LIBOR (subject to a LIBOR floor of 75 basis points). The credit facility is comprised of a U.S.$800 million term loan maturing in 2023, and a U.S.$300 million revolving credit facility (undrawn) expiring in 2021.

The completion of the repricing transaction follows last week's announcement by Moody's Investors Service, Inc. of its upgrade of Air Canada's corporate family rating to Ba3 from B1. Air Canada is currently assigned a BB- (or equivalent) corporate rating from Moody's, Standard & Poor's and Fitch rating agencies.

"This repricing transaction, together with Moody's recent upgrade of Air Canada's corporate family rating to Ba3, reflects Air Canada's progress and focus on improving our balance sheet. We expect to realize annualized interest expense savings of more than C$5 million over the remaining life of the term loan," concluded Michael Rousseau, Executive Vice-President and Chief Financial Officer.

Canadian dollar figures identified in this news release are based on an exchange rate of C$1.00 equal to U.S.$0.7407. Air Canada's obligations under the credit facility are senior secured obligations of Air Canada, secured on a first lien basis, subject to certain permitted liens and exclusions, by certain real estate interests, ground service equipment, certain airport slots and gate leaseholds, and certain Pacific routes and the airport slots and gate leaseholds utilized in connection with these Pacific routes.