Chorus Aviation announces closing of $75 million bought deal offering of 5.75% Senior Unsecured Debentures
Delivering regional aviation to the world
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
HALIFAX, Nova Scotia,
Dec. 06, 2019 (GLOBE NEWSWIRE) -- Chorus Aviation Inc. ('Chorus') (TSX:
CHR) is pleased to announce that it has closed its previously announced
bought deal offering of $75 million aggregate principal amount of senior
unsecured debentures (the ‘Debentures’) at a price of $1,000 per
Debenture (the ‘Offering’). The net proceeds of the Offering will be
used to fund the growth of Chorus Aviation Capital (Chorus’ aircraft
leasing business), including the acquisition of aircraft intended for or
currently on lease to third parties, as well as for working capital
requirements and general corporate purposes.
The Debentures bear
interest at a rate of 5.75% per annum, payable semi-annually in arrears on
June 30 and December 31 of each year, commencing June 30, 2020, and will
mature on December 31, 2024. The Debentures will commence trading today on
the Toronto Stock Exchange under the symbol ‘CHR.DB.A’.
Subject to any required regulatory approval and provided no event of
default has occurred and is continuing under the terms of the indenture
governing the Debentures, Chorus will have the option to satisfy its
obligation to pay the principal amount of the Debentures due at redemption
or maturity (together with any applicable premium) by delivering freely
tradeable Class B Voting Shares (‘Class B Shares’) to holders of the
Debentures (‘Debentureholders’) who are Canadians (as defined in the
Canada Transportation Act (‘Qualified Canadians’) or Class A
Variable Voting Shares (‘Class A Shares’ and, together with the Class B
Shares, the ‘Voting Shares’) to Debentureholders who are not Qualified
Canadians.
The Debentures are not convertible into Voting
Shares by Debentureholders at any time.
A syndicate co-led by
CIBC Capital Markets and RBC Capital Markets, and including Scotiabank,
National Bank Financial Inc., TD Securities Inc., BMO Capital Markets,
Canaccord Genuity Corp., Cormark Securities Inc. and Paradigm Capital Inc.
(collectively, the ‘Underwriters’) acted as underwriters for the
Offering. Chorus has granted the Underwriters an option to purchase up to
an additional $11.25 million aggregate principal amount of Debentures, on
the same terms and conditions, exercisable in whole or in part, for a
period of 30 days following the closing of the Offering.
The
Debentures have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of such Act. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of the securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
About
Chorus
Chorus Aviation 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 comprises 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’.
Forward-Looking Information
This news release contains
'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",
"pending", "project", "will", "would", and similar terms and phrases. In
particular, this news release includes forward-looking information relating
to the anticipated use of the net proceeds of the Offering. 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.
These risks include, but are not limited to, the potential reallocation by
Chorus of all or a portion of the net proceeds of the Offering for business
reasons, including among others, due to the results of operations or as a
result of other business opportunities that may become available, as well
the risk factors identified in Chorus' Annual Information Form
dated February 21, 2019, in Chorus' public disclosure record available
at www.sedar.com and
in the short form prospectus filed in connection with the Offering.
Statements containing forward-looking information in this news release
represent Chorus' expectations as of the date of this news release (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.
Chorus Media Contacts:
Manon Stuart, Halifax, Nova Scotia
(902) 873-5054 manon.stuart@chorusaviation.com
Debra
Williams, Toronto, Ontario (905) 671-7769 debra.williams@chorusaviation.com
Analyst Contact:
Nathalie Megann, Halifax, Nova Scotia, (902) 873-5094 nathalie.megann@chorusaviation.com