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North America Newsletter 8 June

North America Newsletter 8 June

Air Canada Announces Closing of Offering of Shares and Convertible Senior Notes, Raising Gross Proceeds of Nearly C$1.6B  

Air Canada will use the net proceeds from the Offerings to supplement the Company’s working capital and other general corporate purposes. The net proceeds from the Offerings will serve to increase Air Canada’s cash position, thereby allowing for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the COVID-19 pandemic. Deputy Chief Executive Officer & Chief Financial Officer Michael Rousseau said “Coming into 2020, Air Canada enjoyed a very strong liquidity position, before the COVID-19 pandemic and government-imposed quarantines and border restrictions destroyed demand and depleted cash. This important financing will allow us to keep our strong relative position and better manage debt leverage and risk as government restrictions are lifted and the market recovers. The positive reaction from the public markets is a strong endorsement of the strength of our franchise.”

Amazon Air Expands Aircraft Fleet

Amazon announced the lease of 12 Boeing 767-300 converted cargo aircraft from Air Transport Services Group (ATSG). These aircraft will join Amazon’s existing fleet of 70 aircraft to bring its total network to over 80 aircraft. One of the new aircraft joined Amazon’s air cargo operations in May 2020, with the remaining 11 to be delivered in 2021. Vice President of Amazon Global Air Sarah Rhoads said “Amazon Air is critical to ensuring fast delivery for our customers – both in the current environment we are facing, and beyond. During a time when so many of our customers rely on us to get what they need without leaving their homes, expanding our dedicated air network ensures we have the capacity to deliver what our customers want: great selection, low prices and fast shipping speeds.”

GA Telesis Announces Dramatic Expansion and Branding of its Newly Created Flight Solutions Group

GA Telesis’ Component Solutions Group (CSG) has recently completed a five-year expansion and transformation becoming the global leader in integrated aviation aftermarket solutions including aircraft and engine teardown, parts sales, distribution, flight hour services, inventory leasing, APU management, and repair management. With the business growing nearly 300% over the recent span, CSG has become an integral part of the global airline and MRO supply chain.

Kevin G. McAllister, Former President and CEO of Boeing Commercial Airplanes, Joins AE Industrial Partners as Senior Operating Partner

AE Industrial Partners, LP announced that Kevin G. McAllister, former President and CEO of Boeing Commercial Airplanes, has joined the firm as a Senior Operating Partner, effective immediately. Mr. McAllister will also serve as co-head of the newly formed AE Industrial Portfolio Strategy and Optimization Group (PSO Group). Paul McElhinney, an AEI Operating Partner, has been promoted to co-head of the AEI PSO Group and Senior Operating Partner.

Southwest Airlines Announces Pricing Of Notes

Southwest Airlines announced that it has priced its underwritten public offering of $1.8 billion aggregate principal amount of senior notes, consisting of $500 million aggregate principal amount of 4.750% Notes due 2023 and $1.3 billion aggregate principal amount of 5.125% Notes due 2027. The 2023 Notes will be issued at 102.725% of par and the 2027 Notes will be issued at par. Southwest Airlines expects to use the net proceeds from the offering to repay all of the outstanding borrowings under its Amended and Restated 364-Day Credit Agreement and for general corporate purposes.

Southwest Airlines Extends Published Flight Schedule Through Jan. 4, 2021

Southwest Airlines extended its published flight schedule—from October 31, 2020, through January 4, 2021—bringing travellers in key Southwest cities additional flights and new routes during a period that includes additional leisure travel for the autumn and winter holidays. Southwest Airlines Executive Vice President & Chief Commercial Officer Andrew Watterson said “We’re rounding out our plan for this unprecedented year with our business travelers in mind with a fourth quarter schedule that brings them new routes across the country. We’re also offering more flights for all of our Customers in places such as Denver, Las Vegas, Nashville, and Phoenix. We anticipate business travelers will hit the road with a heightened focus on costs, so we’re pairing unmatched schedules with our value and Hospitality to welcome them back, whenever they’re ready to travel.”

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