Photo: Graham Hughes The canadian Press
The air carrier stated that he sold 35.4 million shares with voting rights at 16.25 each, for gross proceeds of 575,6 million.
Air Canada announced Tuesday that it had raised 1,59 billion through the placement of shares and debt securities, an operation that allows him to fill its coffers, while cash will be depleted since the beginning of the pandemic COVID-19.
The air carrier stated that he sold 35.4 million shares with voting rights at 16.25 each, for gross proceeds of 575,6 million. It has also issued $ 1.02 billion of senior convertible notes, unsecured, maturing in 2025, an amount significantly higher than its initial plan of about 540 million.
The chief financial officer, Michael Rousseau, believed that the proceeds of the financing contributed to restore the effect of the liquidity of Air Canada after the containment measures and border closures have led to ” the collapse in demand and the significant reduction in liquidity “.
He added that the positive response of the public markets reflected the ” strength of our business “, even if it has registered a loss of more than $ 1 billion in the first quarter.
Air Canada said that the underwriters had exercised their over-allotment option, which allowed them to buy 15 % more than the proposed actions, and that the first purchasers of the convertible notes had exercised their option which allowed them to purchase 15 % of additional securities.
The analyst of the National Bank’s Cameron Doerksen calculates that the company burns about $ 20 million per day to 620 million per month — in the second quarter, as the majority of the fleet is nailed to the ground, while the fixed costs, such as those related to the leasing of aircraft, persist.
According to the analyst Walter Spracklin, of RBC Dominion securities, the liquidity of Air Canada now total approximately $ 9.7 billion, which will give Air Canada a lot more endurance ” during a recession, with a return to financial balance is expected in 2022.
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