NEW YORK, Milbank, Tweed, Hadley & McCloy LLP represented the initial purchasers, led by Morgan Stanley, in the $537,092,000 offering of enhanced equipment trust certificates (EETC), as detailed in the press release issued by Air Canada. The trusts will use the proceeds from this offering to acquire equipment notes to be issued by Air Canada and secured by three new Boeing 787-9 aircraft and two new Boeing 777-300ER aircraft, which are currently scheduled for delivery in April and May 2016.
The private offering was comprised of Class AA certificates, Class A certificates and Class B certificates. The Class AA Certificates have an interest rate of 3.750% per annum and a final expected distribution date of December 15, 2027. The Class A Certificates have an interest rate of 4.125% per annum and a final expected distribution date of December 15, 2027. The Class B Certificates have an interest rate of 5.000% per annum and a final expected distribution date of December 15, 2023. The three tranches of certificates have a combined weighted average interest rate of 4.044%.
Air Canada is Canada’s largest domestic and international airline, serving more than 190 destinations on five continents.
Earlier this year, Milbank advised the initial purchasers, led by Morgan Stanley and Credit Suisse, in a $1 billion EETC offering by Air Canada. The firm also advised the initial purchaser in a $400 million high yield bond offering by Air Canada and a $1.4 billion refinancing by Air Canada.
The Milbank team was led by Securities partner Arnold Peinado, special counsel Kevin MacLeod and associates Kaveh Namazie and Conor Colasurdo. The Transportation and Space team was led by partner Elihu Robertson and associates Niels Jensen and Bijan Ganji. The Tax team was led by partner Andrew Walker, special counsel Eschi Rahimi-Laridjani and associate Michael Goon. The Environmental team was led by partner Matthew Ahrens and associate Meghan Gabriel.
A separate Milbank team was led by Transportation and Space partner Helfried Schwarz and associate Horine Ye as counsel to The Toronto-Dominion Bank as liquidity provider.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that has been providing innovative legal solutions to clients throughout the world for nearly 150 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.
The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectorial experience and a strong tradition of innovation and client service.
