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Air Canada pulls $1 billion term loan B due to market conditions
By Sara Rosenberg
New York, June 27 - Air Canada elected to withdraw from the market its $1 billion six-year senior secured term loan B (B2/B/BB-) due to unfavorable market conditions, according to a source.
The loan was talked at Libor plus 425 basis points to 450 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.
Financial covenants included a minimum collateral coverage ratio of 1.4 times and minimum liquidity of C$1.3 billion.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC were the lead banks on the deal.
Proceeds were going to be used to fund tender offers for the company's 9¼% senior secured notes due 2015, 10 1/8% senior secured notes due 2015 and 12% senior second-lien notes due 2016.
Air Canada is Saint-Laurent, Quebec-based full-service airline.
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