HALIFAX,
NS, Dec. 14, 2022 /CNW/ - Chorus Aviation Inc.
("Chorus") (TSX: CHR) today announced that it will redeem the
remaining $115,000,000 principal
amount of Chorus' 6.00% Senior Debentures due December 31,
2024 (the "Debentures"), representing all of the Debentures
currently outstanding. The redemption is expected to close on or
about December 30, 2022.
The Debentures will be redeemed at par (being $1,000 for each $1,000 principal amount of Debentures), plus
accrued and unpaid interest until but excluding the redemption
date. The Debentures are secured by certain Dash 8-100 and
Dash 8-300 aircraft and real estate property owned by Chorus'
subsidiaries (the "Collateral Security"). The Collateral Security
will be released following the redemption of the Debentures.
In connection with the issuance of the Debentures, Chorus issued
24,242,424.242 warrants to affiliates of Fairfax Financial Holdings
Limited ("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
will automatically expire upon the redemption of the
Debentures.
The redemption will be funded using the net proceeds from a
recently-completed sale of two wholly-owned aircraft by its
subsidiary, Falko Regional Aircraft ("Falko"), as well as Chorus'
available cash resources. The sale of the two aircraft, which were
previously on lease, generated net proceeds of approximately
US $53.5 million. Joe Randell,
President and Chief Executive Officer, Chorus stated "The sale of
these aircraft demonstrates Falko's ability to generate cash flows
from trading while enabling a reduction in Chorus' debt and
associated leverage. We will continue to look for opportunistic
aircraft sale transactions that advance our transition to an
asset-light leasing business and enhance shareholder value."
The redemption of the Debentures and the aircraft sales
referenced in this news release are not expected to materially
change the financial forecast set out in the Outlook section of
Chorus' news release dated November 9, 2022.
Forward-Looking
Information
This news release contains forward-looking information as
defined under applicable Canadian securities laws. 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.
Such information may involve but is not limited to comments
with respect to strategies, expectations, planned operations or
future actions. Forward-looking information relates to
analyses and other information that is based on forecasts of future
results, estimates of amounts not yet determinable and other
uncertain events. Forward-looking information, by its nature,
is based on assumptions, including those referenced below, and is
subject to important risks and uncertainties. Forward-looking
information cannot be relied upon due to, among other things,
external events, changing market conditions and general
uncertainties of the business. Such 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. Examples
of forward-looking information in this news release include the
anticipated redemption of the Debentures on or about December 30, 2022 on the terms described herein.
Actual results may differ from those indicated in forward-looking
information for a number of reasons, including those described in
Chorus' public disclosure record available under Chorus' profile on
www.sedar.com. 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' 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 under the Air Canada Express brand; 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
SOURCE Chorus Aviation Inc.