WestJet announces pricing of private offering of $400 million of senior unsecured notes

CALGARY, July 16, 2014 /CNW/ – WestJet Airlines Ltd. (TSX:WJA) today announced it has priced an offering of $400 million of 3.287% senior unsecured notes due July 23, 2019 (the “Notes”). The offering is expected to close July 23, 2014.

The Notes have been assigned a BBB- credit rating by Standard & Poor’s Ratings Services. WestJet intends to use the net proceeds from the offering to repay existing bank debt and for general corporate purposes, including to finance aircraft acquisitions.

“We are very pleased with the inaugural offering of WestJet corporate investment grade notes. The investment grade market represents a significant new source of funding for WestJet and adds considerable flexibility to our fleet financing plan going forward,” said Vito Culmone, WestJet’s Executive Vice-President of Finance and CFO. “The investment grade rating assigned to these notes is a reflection of our track record of profitability, solid market position, and strong liquidity. I want to thank our 10,000 WestJetters for their continuing commitment to delivering our brand of friendly caring service to our guests, which fundamentally makes these accomplishments possible.”

The Notes are being offered in Canada on a private placement basis exempt from prospectus requirements under applicable Canadian securities laws. The offering is being made through a syndicate of banks, led by TD Securities Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc. as joint book-runners.

The Notes have not been and will not be qualified for distribution to the public under applicable Canadian securities laws. The Notes have not been and will not be registered under the U.S. Securities Act, or the securities laws of any state of the United States, and may not be offered or sold in the United States unless an exemption from registration requirements is available. The Notes will not be listed on any securities exchange or any automated quotation system. This news release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes in any jurisdiction.