Air Canada announced that it has completed the closing of USD 2.15 billion senior secured credit facilities, comprised of (i) a USD 1.175 billion term loan B maturing in 2031 (the Term Loan) and (ii) a USD 975 million revolving credit facility maturing in 2029 (the Revolving Facility and, together with the Term Loan, the Senior Credit Facilities). The aggregate gross proceeds of the Term Loan, together with cash from Air Canada balance sheet of USD 1.09 billion, are being applied to refinance all of Air Canada's indebtedness outstanding under its existing USD 2.265 billion term loan B maturing in 2028. The Revolving Facility, which is the result of an upsize and extension of Air Canada's existing USD 600 million revolving credit facility previously maturing in 2025, is undrawn as of the date hereof, and any future borrowings thereunder would be intended to fund working capital and other general corporate purposes of Air Canada and its subsidiaries.

Concurrently with the closing of the Senior Credit Facilities, Air Canada also terminated its undrawn CAD 200 million revolving credit facility maturing in 2026. Key highlights of the closing of Senior Credit Facilities include: significantly reducing Air Canada's outstanding senior secured indebtedness by USD 1.09 billion; reducing Air Canada's interest rate on its term loan B borrowings, to 250 basis points over SOFR (with no SOFR floor, no spread adjustment); and increasing available undrawn amounts under the Revolving Facility by USD 375 million.