Air Canada parent company to reveal financing deals - report

Airline Industry Information, March 9, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Canadian newspaper The Globe and Mail reported on Tuesday (8 March) that ACE Aviation Holdings, the parent company of Air Canada, is to unveil two major financing deals.

The holding company of the airline is to announce a revolving line of credit for as much as CAD300m, according to sources quoted by the newspaper. The company is also reportedly finalizing a plan to sell securities to investors to help pay down a USD425m loan from GE Capital Corp.

The securities issue is aimed at cutting ACE's borrowing costs which currently stand about 4.5 percentage points above the London interbank offered rate, reported Reuters.

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