Morning Commentary: Bryn Mawr offers notes; Air Canada brings fourth certificates deal

By Cristal Cody

Tupelo, Miss., Dec. 8 – Bryn Mawr Bank Corp. announced plans early Friday for an offering of fixed-to-floating rate subordinated notes due 2027.

Keefe, Bruyette & Woods is the bookrunner.

Otherwise, market action was mostly light over the morning with participants focused on the Labor Department’s November jobs report, which came in higher than expected with 228,000 jobs added over the month. Market analysts had forecast a gain of 195,000 jobs.

Air Canada announced details of its $719,181,000 three-part Rule 144A and Regulation S private sale of enhanced equipment trust certificates on Thursday.

The certificates priced tighter than initial guidance, a source said.

The company sold $400,108,000 of 3.3% series 2017-1 class AA certificates at spread of Treasuries plus 93.3 basis points. The class AA certificates have a final expected distribution date of Jan. 15, 2030.

Air Canada priced $172,198,000 of 3.55% series 2017-1 class A certificates, which have a final expected distribution date of Jan. 15, 2030, at a Treasuries plus 118.3 bps spread.

The company also sold $146,875,000 of 3.7% series 2017-1 class B certificates with a spread of 155.9 bps over Treasuries. The class B certificates have a final expected distribution date of Jan. 15, 2026.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. were the lead managers.

“This fourth offering allows Air Canada to finance the acquisition of four new Boeing 787-9 and nine new Boeing 737 MAX-8 aircraft at very competitive terms,” Michael Rousseau, chief financial officer, said in the release. “The weighted average interest rate of 3.422% and the 1.105% margin over the matched maturity benchmark U.S. Treasury yield both represent the lowest of the four EETC offerings Air Canada has conducted over the last four and half years, and brings the total amount raised under our EETC financings to nearly US$3 billion.”

Montreal-based Air Canada is Canada’s largest domestic and international airline.

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