HALIFAX, April 28, 2020 /CNW/ – Chorus Aviation Inc. ("Chorus") announced today that it has executed the US$100 million unsecured revolving credit facility first announced on April 6, 2020.
"In today’s challenging and uncertain environment, bolstering our liquidity is of utmost importance to position Chorus as a strong organization that is ready to resume normal operations when this pandemic abates," said Joe Randell, President and Chief Executive Officer, Chorus.
The facility is for general corporate purposes and repayable in two years. It contains customary covenants and events of default, including restrictions on share repurchases and the payment of dividends consistent with Chorus’ operating facility, a mandatory prepayment upon the occurrence of a change of control of Chorus, and event of defaults that would be triggered upon the acceleration of Chorus indebtedness in excess of US $10.0 million or any event of default under any other indebtedness owed by Chorus to the lender.
This news release may contain ‘forward-looking information’. 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. Examples of forward-looking information in this news release include, but are not limited to, statements concerning Chorus’ future liquidity and financial strength. Actual results may differ materially from results indicated in forward-looking information for a number of reasons, including a prolonged duration of the COVID-19 outbreak and/or further restrictive measures to contain its spread, the evolving impact of COVID-19 on Chorus’ contractual counterparties, changes in aviation industry and general economic conditions, the emergence of other epidemic diseases, the continued payment (in whole or in part) of amounts due under the capacity purchase agreement with Air Canada (the "CPA"), the failure to successfully refinance existing unencumbered aircraft on the terms currently contemplated or at all, the delay or non-delivery of nine new CRJ900 aircraft to Chorus for operation and lease under the CPA, as well as the risk factors identified in Chorus’ Annual Information Form dated February 12, 2020 and in Chorus’ public disclosure record available at www.sedar.com. 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.
About Chorus Aviation Inc.
Chorus 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 is comprised of 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’. www.chorusaviation.com
SOURCE Chorus Aviation Inc.