Discovery Air announces new, committed operating facility

/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES/

YELLOWKNIFE, NT, Aug. 1, 2012 /CNW/ - Discovery Air Inc. ("Discovery Air") announced today that it has secured a new, committed operating facility with the Canadian Imperial Bank of Commerce ("CIBC"). The new facility has a limit of up to $25 million (depending on whether advances are made during or outside of Discovery Air's peak operating period and on the value of eligible receivables and inventory) and may be used for working capital and general corporate purposes. The new facility replaces Discovery Air's demand operating facility with Callidus Capital Corporation.

Brian Semkowski, Discovery Air's President and Chief Executive Officer, stated "This new, committed facility affords Discovery Air a greater certainty with respect to its available working capital while reducing interest expense. We want to thank Callidus Capital Corporation for their support and partnership over the last three years. We look forward to working with and creating a strong relationship with our new operating lender, CIBC."

The new facility with CIBC is secured by a first charge on the receivables and inventory of Discovery Air and certain of its subsidiaries, general security agreements and other customary security agreements.

In connection with the CIBC financing, Discovery Air has also amended certain of the terms of its outstanding $70 million principal amount of secured convertible debentures previously issued on September 23, 2011 to, among other things, confirm the debenture holders' priority in relation to cash proceeds from their priority collateral and clarify certain defined terms.

ABOUT DISCOVERY AIR AND ITS SUBSIDIARIES

Discovery Air is a Canadian specialty aviation company, operating over 150 aircraft with 850 team members. We deliver airborne training to the Canadian military; air ambulance services; airborne fire services; helicopter operations; fixed-wing air charter services; expediting and logistics support; and a range of maintenance, repair, overhaul, modification, engineering and certification services.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Discovery Air's public communications may include written or oral forward-looking statements (as defined in applicable securities laws) regarding the future performance of Discovery Air and/ or its subsidiaries. Forward-looking statements by definition are based on assumptions and, as a result, are subject to risks and uncertainties, including those identified in the Management's Discussion and Analysis section of Discovery Air's financial statements for the fiscal year endedJanuary 31, 2012 and the first quarter of fiscal year 2013, both of which are available at www.sedar.com. As a result of such risks and uncertainties, actual results may differ materially from those discussed in forward-looking statements, and readers should not place undue reliance on such statements. Forward-looking statements represent expectations as of the date they are made, and Discovery Air disclaims any intention or obligation to update or revise any forward-looking statements it may make, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

The Corporation's Class A common voting shares and unsecured convertible debentures trade on the Toronto Stock Exchange under the symbols DA.A and DA.DB.A, respectively.

SOURCE: Discovery Air Inc.

Sheila Venman
Investor Relations
[email protected]
Toll Free [phone]

Andy Min
Chief Financial Officer
[email protected]
519-660-4247 ext. 185