HALIFAX,
NS, Jan. 27, 2023 /CNW/ - Chorus Aviation Inc.
("Chorus") (TSX: CHR) announced today that it has entered into
a second amendment and restatement of its existing committed
operating credit facility (the "Amended 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 and the Bank
of Montreal as lenders.
The Amended Facility extends the maturity date of the credit
facility for an additional 15 months from October 14, 2024 to January 27, 2026 and adds a $50 million uncommitted accordion
feature.
The Amended 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 $100 million, subject to a
borrowing base calculation, plus a $50
million uncommitted accordion. The Amended Facility is secured
by all present and after-acquired personal property of the Credit
Parties, excluding certain specified assets such as aircraft and
engines and the equity securities of certain Chorus subsidiaries
such as 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 Amended Facility is available under
Chorus' profile on SEDAR at www.sedar.com.
Scotiabank, in its capacity as administrative agent for and on
behalf of the lenders under the Amended Facility, and 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") are parties to certain
intercreditor agreements, copies of which are available under
Chorus' profile on SEDAR at www.sedar.com (the "Intercreditor
Agreements"). The Intercreditor Agreements provide, among other
things, that following the occurrence of a default (as defined in
the Intercreditor Agreements) which is continuing or upon an
insolvency or liquidation proceeding (as defined in the
Intercreditor Agreements) involving Chorus, all obligations under
the Amended Facility shall first be paid in full before payments
are made to holders of Debentures under or pursuant to the
applicable indenture and as such, to the extent that any amounts
remain outstanding under the Amended Facility after realization
upon the applicable security, any proceeds received by the Trustees
on behalf of the holders of Debentures may be required to be
remitted to the administrative agent under the Amended Facility
until all amounts due under the Amended Facility are paid in
full.
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 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.A', 'CHR.DB.B', and 'CHR.DB.C'
respectively. www.chorusaviation.com.
SOURCE Chorus Aviation Inc.