Air Canada (TSX:AC) has raised $1.59 billion from share and debt offerings to replenish cash lost due to the COVID-19 pandemic and global lockdown measures.
The carrier says it sold 35.4 million voting shares at $16.25 each for total proceeds of $575.6 million. The company also issued $1.02 billion in convertible senior unsecured bonds due in 2025, above initial plans to raise $540 million.
Chief Financial Officer Michael Rousseau said in a news release that financing proceeds will help to restore Air Canada's liquidity after confinement measures and international border shutdowns "destroyed demand and depleted cash."
Rousseau said a positive reaction from the markets amounts to "a strong endorsement" of the airline's strength despite more than $1 billion in losses posted in the first quarter.
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