The company said Tuesday it sold 35.4 million voting shares at $16.25 apiece for gross proceeds of $575.6 million.
It also issued $1.02 billion in convertible senior unsecured notes due in 2025, well above its initial plan for about $540 million.
The financing proceeds help to bolster Air Canada’s liquidity after confinement measures and border shutdowns “destroyed demand and depleted cash,” chief financial officer Michael Rousseau said in a release.
Despite more than $1 billion in losses in the first quarter, a positive reaction from the public markets amounted to “a strong endorsement” of the airline’s strength, he said.
Story continues below advertisement
3:56Coronavirus outbreak: Garneau says airlines facing ‘very tough times’ as customers hope for refunds
Coronavirus outbreak: Garneau says airlines facing ‘very tough times’ as customers hope for refunds
The underwriters exercised their over-allotment option to buy 15 per cent of the shares on offer,
Thanks for reading!
Energeticcity.ca is the voice of the Peace, bringing issues that matter to the forefront with independent journalism. Our job is to share the unique values of the Peace region with the rest of B.C. and make sure those in power hear us. From your kids’ lemonade stand to natural resource projects, we cover it – but we need your support. Give $10 a month to Energeticcity.ca today and be the reason we can cover the next story.