Chorus Aviation announces exercise in full and closing of over-allotment option in connection with bought deal offering of 5....
11 Décembre 2019 - 2:18PM
Chorus Aviation Inc. ('Chorus') (TSX: CHR) is pleased to announce
that the underwriters of its offering of 5.75% senior unsecured
debentures (the ‘Debentures’) exercised in full their
over-allotment option resulting in the issue of an additional
$11,250,000 aggregate principal amount of Debentures, bringing the
total offering to $86,250,000 aggregate principal amount of
Debentures.
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 other 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 are listed for trading 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.
acted as underwriters for 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
Chorus Aviation (TSX:CHR)
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