Chorus Aviation Secures US $300 Million Financing Facility to Support the Growth of its Regional Aircraft Leasing Business

Delivering regional aviation to the world

HALIFAX, Jan. 21, 2019 /CNW/ - Chorus Aviation Inc. ('Chorus') (TSX: CHR) announced today that its wholly-owned subsidiary, Chorus Aviation Capital (Ireland) Limited, has secured a US $300 million committed, revolving credit facility to be used to finance future aircraft acquisitions for its regional aircraft leasing business. 

Borrowing under this facility will be used to support the expansion of Chorus Aviation Capital's regional aircraft portfolio beyond its current 34 aircraft valued at US $750 million. 

"This facility will provide a committed and flexible source of debt capital further enhancing our ability to grow our regional aircraft portfolio," stated Steve Ridolfi, President, Chorus Aviation Capital Corp. "Today's announcement is an important step in our evolution, greatly increasing our capacity and enabling us to pursue a broader range of potential transactions. The strong bank support we received during this process is a testament to their confidence in our business plan and team."

The facility is led by Deutsche Bank as Lead Arranger and Structuring Agent and includes Barclays and the Royal Bank of Canada as syndicate members. "Deutsche Bank is delighted to support Chorus with its inaugural portfolio acquisition facility for its growth aspirations in the regional aircraft sector", stated Richard Moody, Managing Director, Global Co-Head, Transportation, Infrastructure & Energy, Deutsche Bank.

The facility contains eligibility and concentration criteria, as well as ongoing financial covenants customary for a facility of this nature. Loans under the facility are secured primarily by the aircraft assets and related leases financed by the facility and are guaranteed by Chorus Aviation Capital (Ireland) Limited.

About Chorus Aviation Capital

Established in 2017, Chorus Aviation Capital currently has relationships with 12 regional airlines based in 12 countries. The company is focused on building a portfolio of new and mid-life regional aircraft, while leveraging the synergies inherent within its sister companies to provide a full suite of regional aviation services.

About Chorus Aviation Inc.

Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010. Chorus' vision is to deliver regional aviation to the world. Chorus has been leasing its owned regional aircraft into Jazz's Air Canada Express operation since 2009, and established Chorus Aviation Capital to become a leading, global provider of regional aircraft leases and support services.  Chorus also owns Jazz Aviation LP and Voyageur Aviation Corp. – companies that have long histories of safe and solid operations that deliver excellent customer service in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul.  Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol 'CHR'. www.chorusaviation.ca

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", "project", "will", "would", and similar terms and phrases, including references to assumptions. 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 expressed in the forward-looking information. Factors that may cause results to differ from those indicated in this news release include the inability of Chorus' subsidiaries to satisfy the conditions precedent to the use of the facility or comply with the ongoing covenants in the facility. Results indicated in forward-looking information may also differ materially from actual results for a number of reasons, including those described in Chorus' Annual Information Form dated February 14, 2018 and Management's Discussion and Analysis of Results of Operations and Financial Condition dated November 13, 2018. 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.

SOURCE Chorus Aviation Inc.

Chorus Media Contacts: Manon Stuart, Halifax, Nova Scotia, [phone], [email protected]; Debra Williams, Toronto, Ontario, [phone], [email protected]; Chorus Analyst Contact: Nathalie Megann, Halifax, Nova Scotia, [phone], [email protected]

Related Links

www.chorusaviation.ca