Air Canada Prepares for $900M Private Placement

Air Canada Plans $900M in New Finances

Montreal, Canada Private Placement Air Canada announced it is getting a strong lift from the recovery in international travel and plans to raise $900 million in new finance via broker-dealer. The market responded by pushing the shares up more than 10 per cent.

The $900 million of five-year senior secured notes raised by broker-dealer will be used to repay $700 million of debt due 2014. This is held by GE Canada Finance Holding Co., Export Development Canada, Aeroplan Canada Inc. and ACE Aviation Holdings Inc.

The emergency private placement financing was arranged last summer when Air Canada was caught in the recession’s slipstream and faced a possible bankruptcy filing. The remainder of the new private placement finance or $200 million will be used for general corporate purposes.

The CEO said in May he believed the skies were opening up for Air Canada and the company narrowed its loss in the first quarter with rising traffic and firming fares.

The airline said Tuesday it expects second-quarter earnings before interest, tax, depreciation, amortization and aircraft rent (EBITDAR) will be $320 million to $340 million, up from $135 million a year earlier. Operating income will be $60 million to $80 million. The actual numbers will be released on August 5.

Revenue per seat mile will be up 6.6 per cent for the year, reflecting fuller planes and higher fares, and unit costs (excluding fuel) will be lower.

About PPM

PPM is the leading U.S. entrepreneurial firm that specializes in writing private placement memorandums (PPM) and linking investors with entrepreneurs.

Since 1999, the founders of PPM have provided professional business writing services, such as a PPM or business plan, to more than 2,000 businesses worldwide. Our company is considered to be the most cost effective, efficient consultants for private placement memorandum development in the United States. We are Wall Street’s, and by extension, the New York private placement (PPM) leaders.

PPM’s main service is the creation of private placement memorandum regulation d (Reg. d) documents. However, we offer much more. In case the entrepreneur needs additional services, such as a business plan, website, or additional legal work, PPM can create one pricing package for all required documentation or service. Because we simultaneously work with many companies both in and out of the U.S., the ability to adapt to the individual needs – as well as to regional and global demands – helps our clients save needed capital and time.

We are leaders in:

• Canada Private Placement
Real Estate Private Placement
• Power Technology Private Placement
• Debt Private Placement
• Equity Private Placement
• Power Technology Private Placement Memorandum Writing
• Canada Private Placement Memorandum Writing
Real Estate Private Placement Memorandum Writing
• Debt Private Placement Memorandum Writing