Air Canada will sell a 25% non-controlling stake in its Aeroplan loyalty programme to an investor group led by Blackstone and La Caisse, in a transaction valued at C$2.5 billion. The Montreal-based carrier plans to use most of the proceeds to repay an upcoming US$1.2 billion bond maturity, while the balance will support share repurchases as it keeps 75% ownership and operational control of the programme.
PSP Investments and BCI are also part of the buyer group, which is taking a minority position rather than acquiring Aeroplan outright. Settlement is scheduled for 17 August, giving Air Canada a substantial cash inflow ahead of the bond repayment and reducing gross debt without cutting cash on hand.
The deal values Aeroplan at about C$10 billion, underlining the continuing importance of loyalty programmes as financing assets for major airlines. Air Canada also outlined broader capital-allocation options, including a possible substantial issuer bid of up to C$800 million, while retaining the ability to buy back the stake later.