Air Canada tapping securities markets for $1.4-billion to bolster cash as travel stalls GlobeBusiness
This translation has been automatically generated and has not been verified for accuracy.Air Canada is tapping securities markets for $1.4-billion as Canada’s largest airline bolsters its cash balance amid a near collapse of global air travel.
The financings will be used to “supplement our working capital and for other general corporate purposes,” Air Canada said. “The net proceeds will serve to increase Air Canada's cash position, thereby allowing for additional flexibility both from an operational standpoint and in the implementation of planned mitigation and recovery measures in response to the COVID-19 pandemic.”The bonds, convertible to shares, pay 4-per-cent a year and mature on July 1, 2025.
Air Canada lost $1-billion in the first three months of 2020, and burned through $22-million a day in March as governments closed borders and told people to avoid nonessential travel. Air Canada had $6.5-billion in cash at the end of March, an amount that will climb to $9.2-billion after tapping credit lines, borrowing cash and the stock and bond offering priced on Thursday.
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