HALIFAX, NS, Oct. 14, 2021 /CNW/ - Chorus Aviation Inc.
("Chorus") (TSX: CHR) announced today that it has entered into an
agreement for a three-year committed operating credit facility (the
"New Facility") with The Bank of Nova
Scotia ("Scotiabank") as lender, sole lead arranger,
bookrunner, administrative agent and issuing bank, and the Canadian
Imperial Bank of Commerce ("CIBC") and the Bank of Montreal as lenders. The New Facility replaces
Chorus' credit facility (the "Prior Facility") under the second
amended and restated credit agreement dated June 28, 2019 (as amended) which provided a
$75 million committed limit and was
scheduled to mature in August
2022.
The New Facility provides Chorus and certain designated
subsidiaries including Chorus Aviation Capital Corp., Jazz Aviation
LP and Voyageur Aviation Corp. (collectively, the "Credit Parties")
with a committed limit of up to $75
million, subject to a borrowing base calculation, plus a
$25 million uncommitted accordion.
The New Facility is secured by all present and after-acquired
personal property of the Credit Parties, excluding certain
specified assets which include aircraft and engines and the equity
securities of Chorus Aviation Capital Corp. and its subsidiaries.
It contains customary representations, warranties and covenants,
including a covenant to maintain a minimum consolidated interest
coverage ratio. A copy of the New Facility is available under
Chorus' profile on SEDAR at www.sedar.com.
In connection with Chorus entering into the agreement for the
New Facility, the trustees (collectively, the "Trustees") under the
indentures for Chorus' 5.75% Senior Unsecured Debentures due
December 31, 2024, 6.00% Convertible
Senior Unsecured Debentures due June 30,
2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 (collectively, the "Debentures")
entered into, in their capacity as trustee for and on behalf of the
holders of the relevant Debentures, intercreditor agreements (the
"Intercreditor Agreements") with Scotiabank, in its capacity as
administrative agent for and on behalf of the lenders under the New
Facility. The Intercreditor Agreements are on substantially similar
terms as the intercreditor agreements that were entered into by
each of the Trustees with the administrative agent for and on
behalf of the lenders under the Prior Facility. Copies of the
Intercreditor Agreements are available under Chorus' profile on
SEDAR at www.sedar.com.
About Chorus
Chorus is a global provider of integrated regional aviation
solutions. Chorus' vision is to deliver regional aviation to the
world. Headquartered in Halifax, Nova
Scotia, Chorus is comprised of Chorus Aviation Capital – a
leading, global lessor of regional aircraft, and Jazz Aviation and
Voyageur Aviation – companies that have long histories of safe
operations with excellent customer service. Chorus provides a full
suite of regional aviation support services that encompasses every
stage of an aircraft's lifecycle, including aircraft acquisitions
and leasing; aircraft refurbishment, engineering, modification,
repurposing, and preparation; contract flying; and aircraft and
component maintenance, disassembly, and parts provisioning. For
further information, please visit Chorus' website:
www.chorusaviation.com.
Chorus' Class A Variable Voting Shares and Class B Voting Shares
trade on the Toronto Stock Exchange under the trading symbol 'CHR'.
Chorus' 6.00% Debentures due December 31,
2024, 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior
Unsecured Debentures due June 30,
2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange
under the trading symbols 'CHR.DB', 'CHR.DB.A', 'CHR.DB.B' and
'CHR.DB.C', respectively.
Forward Looking Information
This news release may contain 'forward-looking information' as
defined under applicable Canadian securities legislation.
Forward-looking information is identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "potential",
"project", "will", "would", and similar terms and phrases,
including references to assumptions. Forward-looking information
involves known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to
differ materially from those expressed in the forward-looking
information. Results indicated in forward-looking information may
differ materially from actual results for a number of reasons,
including a prolonged duration of the COVID-19 pandemic and/or
further restrictive measures to contain its spread, the evolving
impact of the COVID-19 pandemic on Chorus' contractual
counterparties, as well as the risks described in Chorus' most
recent Annual Information Form and Management's Discussion and
Analysis of Results of Operations and Financial Condition.
Statements containing forward-looking information in this news
release are made as of the date of this news release, and Chorus
does not undertake any obligation to publicly update such
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws.
SOURCE Chorus Aviation Capital