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Air Canada parent company plans to increase equity.

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Air Canada's parent company ACE Aviation Holdings Inc plans to increase its equity and debt offering by 20% to CAD720m, the company said on Wednesday (30 March).

ACE is to offer 11.35 million class A and B shares at CAD37 each, for a total value of CAD420m, as well as CAD300m in 4.25% convertible senior notes due 2035. The notes will be convertible into stock at CAD48 a share, the company said.

Last week ACE announced plans to refinance a GE Capital loan by raising CAD600m. After the offering and refinancing ACE's cash balance of CAD1.8bn will increase to over CAD2bn and adjusted net debt will amount to some CAD4bn, the company said.

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Publication:Airline Industry Information
Article Type:Brief Article
Geographic Code:1CANA
Date:Mar 31, 2005
Words:136
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