HALIFAX, NS, Dec. 31, 2021 /CNW/ - Chorus Aviation Inc.
("Chorus") (TSX: CHR) announces that it has today redeemed
$85,000,000 principal amount (the
"Redeemed Debentures") of Chorus' 6% Senior Debentures due
December 31, 2024 (the "6.00%
Debentures"). As a result of this redemption, $115,000,000 aggregate principal amount of 6.00%
Debentures currently remain outstanding.
The Redeemed Debentures were redeemed at par (being $1,000 for each $1,000 principal amount of Redeemed Debentures),
plus accrued and unpaid interest to but excluding the Redemption
Date. The redemption was funded using the net proceeds of the
5.75% Senior Unsecured Debentures due June
30, 2027 (issued by Chorus on September 27, 2021), as well as Chorus' available
cash resources.
The 6.00% Debentures are secured by certain Dash 8-100s and Dash
8-300s and real estate property owned by Chorus' subsidiaries (the
"Collateral Security"). The Collateral Security will be released
upon the earlier of (i) Fairfax Financial Holdings Limited, its
subsidiaries or affiliates (collectively, "Fairfax") ceasing to own
all of the issued and outstanding 6.00% Debentures and (ii) the
redemption of all of the 6.00% Debentures.
In connection with the issuance of the 6.00% Debentures, Chorus
issued 24,242,424.242 warrants to Fairfax entitling the holder
thereof to acquire, on exercise of each warrant and subject to
certain adjustments, one Class A Variable Voting Share or Class B
Voting Share of Chorus at a price of $8.25 per share (the "Warrants"). The Warrants
are exercisable up to and including the earlier of (i) the business
day immediately preceding the maturity date of the 6.00% Debentures
and (ii) the date that all of the 6.00% Debentures have been
redeemed.
Forward-Looking Information
This news release contains "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. Examples of statements containing
forward-looking information in this news release include the
anticipated repayment of the 6.00% Debentures. Results indicated in
forward-looking information may differ materially from actual
results for a number of reasons, including the risk factors
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.
About Chorus Aviation Inc.
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; aircraft and component maintenance, disassembly, and parts
provisioning.
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, 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. www.chorusaviation.com
SOURCE Chorus Aviation Inc.