July 9, 2020

Milbank Advises on Air Canada’s Equity and Structured Debt Transactions


In June of 2020, Milbank LLP represented the initial purchasers, underwriters and investors in connection with approximately $2.5 billion of capital raised by Air Canada through various debt and equity transactions including:

  • The initial purchasers in Air Canada’s US$747,500,000 offering of its 4.00% Convertible Senior Notes due 2025;
  • The underwriters and initial purchasers in Air Canada’s US$575,575,000 offering of its Class A variable and Class B voting shares;
  • The initial purchasers in Air Canada’s US$315,783,000 of its Air Canada Pass Through Class C Certificates, Series 2020-1 in a “Super-C” transaction; and
  • The investors in Air Canada’s issuance of 9.00% Second Lien Secured Notes due 2024 in an aggregate principal amount of C$840,000,000.

Air Canada is the largest provider of scheduled passenger services in the Canadian market, the Canada-US transborder market and in the international market to and from Canada. The proceeds of the notes will be used for working capital and general corporate purposes.

The Milbank deal team was led by Transportation and Space partner Jim Pascale and Global Capital Markets partners Brett Nadritch and Jonathon Jackson, along with associates Matthew Kusel, Alexander Becker, David Cochran, Josh Forman, Drew Gregory, Nicole Rose and Angela Chen. The team also included Tax partner Andrew Walker and associate David Hanno.