Air Canada has raised $1.59 billion from share and debt offerings intended to offset some of the carrier’s losses from the coronavirus pandemic.
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