HALIFAX,
NS, Aug. 29, 2022 /CNW/ - Chorus Aviation Inc.
('Chorus') (TSX: CHR) today announced that its subsidiary, Falko
Regional Aircraft Limited ('Falko') has executed agreements to sell
8 wholly owned aircraft that had previously been on lease, for net
proceeds of approximately USD $45
million after related debt repayments and estimated tax
provisions. The Falko team has an extensive track record of
opportunistically selling aircraft, having completed over 160
aircraft sales.
"I'm pleased to report that the first trading transaction of the
Chorus/Falko era is taking place. This deal is transacting at
one time book value and will generate net free cash flow of
approximately USD $45 million,"
stated Joe Randell, President and
Chief Executive Officer, Chorus.
Mr. Randell continued, "The recent Falko acquisition has made
Chorus a market leading regional aircraft asset manager and the
world's largest aircraft lessor focused solely on the regional
aircraft leasing space, significantly advancing our growth and
diversification strategy."
"The sale of these Chorus owned aircraft decreases debt and
leverage while generating cash flows from trading. We will continue
to look for opportunistic asset sale transactions to increase
shareholder value," concluded Mr. Randell.
This transaction is expected to close before the end of the
third quarter of 2022 and is not expected to materially change
the financial forecast set out in Chorus' news release dated
August 4, 2022.
About Chorus Aviation Inc.
Chorus' vision is to
deliver regional aviation to the world. Headquartered
in Halifax, Nova Scotia,
Chorus is an integrated provider of regional aviation solutions,
including asset management services. Its principal
subsidiaries are: Falko Regional Aircraft, the world's largest
asset manager and aircraft lessor focused solely on the regional
aircraft leasing segment; Jazz Aviation, the sole provider of
regional air services to Air Canada; and Voyageur Aviation, a
provider of specialty air charter, aircraft modification, and parts
provisioning services to regional aviation customers around the
world. Together, Chorus' subsidiaries provide support
services that encompass every stage of a regional aircraft's
lifecycle, including: aircraft acquisition and leasing; aircraft
refurbishment, engineering, modification, repurposing and
transition; 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% Senior 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. www.chorusaviation.com
Forward-looking information
This news release may contain 'forward-looking information'.
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 indicated in the forward-looking
information. Actual results may differ materially from results
indicated in forward-looking information for a number of reasons,
including the factors identified in Chorus' public disclosure
record available at www.sedar.com and the risk factors
identified in Chorus' Annual Information Form dated February
16, 2022 (as updated by the risk factors identified in Chorus'
Management's Discussion and Analysis of Operations and Financial
Condition dated May 5, 2022). In particular, it is possible
that the transactions contemplated by this news release fail to
close on the terms currently contemplated or at all.
Statements containing forward-looking information represent Chorus'
expectations as of the date made (or as of the date they are
otherwise stated to be made) and are subject to change after such
date. Chorus disclaims any intention or obligation to update or
revise such statements to reflect new information, subsequent
events or otherwise, unless required by applicable securities
laws.
SOURCE Chorus Aviation Inc.