In late September, Air Canada issued junk bonds. The airline, which sports a rating of double-B-minus from Standard and Poor’s, borrowed $200-million for seven years and paid just 4.75-per-cent interest for the privilege.
It’s not just Air Canada accessing cheap money. The airline’s offering was one of five recent Canadian-dollar-denominated bonds sold by domestic companies without investment-grade ratings. All the bonds are paying interest in the 5-per-cent to 7-per-cent range, and all were well-received by investors.Report Typo/Error
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