(Ottawa, August 22, 2007) – In response to the problems affecting the non-bank asset-backed commercial paper (ABCP) market, NAV CANADA wishes to advise of its decision to support the purpose of the Montreal ABCP protocol of August 16, 2007 and to provide a noteholder standstill acknowledgement as requested by the signatories of the protocol. NAV CANADA holds approximately $368 million of non-bank R-1 (high) rated ABCP allocated among its reserve funds and accounts required by its debt indentures. The Company has approximately $130 million of cash and cash equivalents not affected by the problems in the non-bank ABCP market. In addition, it has unrestricted access to $565 million of a 5-year syndicated credit facility with a group of major Canadian financial institutions that is presently available and undrawn.
NAV CANADA is currently in compliance with all of its financial covenants and, based on current information, it does not expect the problems affecting the ABCP market to have a material adverse impact on its business or its on-going compliance with financial covenants.
NAV CANADA is monitoring the ABCP situation closely, and will continue discussions with representatives of signatories of the August 16th Montreal protocol and others working to remedy the problems in the ABCP market.
NAV CANADA, the country’s civil air navigation services provider, is a private sector, non-share capital corporation financed through publicly-traded debt. With operations coast to coast, NAV CANADA provides air traffic control, flight information, weather briefings, aeronautical information services, airport advisory services and electronic aids to navigation.
Source: NAV CANADA
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