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.
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.