Air Canada Announces Proposed Financing Transaction

MONTREAL, April 7, 2014 /CNW Telbec/ – Air Canada today announced a private offering of US$300 million aggregate principal amount of senior unsecured notes (the “Notes”). Air Canada intends to use the net proceeds from the offering for general corporate purposes. The Notes will be senior unsecured obligations of Air Canada and will be guaranteed on a senior unsecured basis by one of Air Canada’s subsidiaries.

The Notes will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and to persons other than U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.

The Notes will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the Notes in Canada will be made on a basis that is exempt from the prospectus requirement of such securities laws.