ACE Aviation Holdings Inc. announces secondary offering of units of Jazz Air Income Fund
/NOT FOR RELEASE OVER U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
MONTREAL, Oct. 1 /CNW Telbec/ - ACE Aviation Holdings Inc. announced
today that it has entered into an agreement with a group of underwriters to
sell an aggregate of 35.5 million trust units (the "Units") of Jazz Air Income
Fund at a price of $7.75 per Unit, for gross proceeds of $275.1 million. Jazz
Air Income Fund will not receive any of the proceeds from the offering. A
preliminary short form prospectus will be filed in each of the provinces and
territories of Canada by October 5, 2007. The offering is expected to close on
or about October 22, 2007 and is subject to certain conditions including the
receipt of all required regulatory approvals. The underwriting syndicate is
being led by RBC Capital Markets and CIBC World Markets Inc.
Immediately following the offering, ACE Aviation Holdings Inc. will
retain 24,726,920 units of Jazz Air Income Fund, representing 20.1% of the
122,865,143 units issued and outstanding.
The securities offered have not been, and will not be, registered under
the United States Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or any applicable exemption
from the registration requirement of such Act.
This press release does not constitute an offer to sell or the
solicitation of any offer to buy nor will there be any sale of these
securities in any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such province, state or jurisdiction.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may contain forward-looking
statements. These forward-looking statements are identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will", "would", and
similar terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.
Forward-looking statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, amongst other things,
changing external events, general uncertainties of the business and matters
that are not within the control of ACE Aviation or Jazz. Such statements
involve known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements to differ materially
from those expressed in the forward-looking statements. The forward-looking
statements contained herein represent ACE Aviation's and Jazz's expectations
as of the date they are made and are subject to change after such date.
However, ACE Aviation and Jazz disclaim any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required under applicable
About ACE Aviation Holdings Inc.
ACE Aviation Holdings Inc. is a holding company of various aviation
interests including Air Canada, Aeroplan Income Fund, Jazz Air Income Fund and
About Jazz Air Income Fund
Jazz Air Income Fund is an unincorporated, open-ended trust established
under the laws of the Province of Ontario, created to indirectly acquire and
hold an interest in the outstanding limited partnership units of Jazz Air LP.
About Jazz Air LP
Jazz Air LP (Air Canada Jazz) is the second largest airline in Canada
based on fleet size and the number of routes operated. Air Canada Jazz
operates more flights and flies to more Canadian destinations than any other
Canadian carrier. Air Canada Jazz forms an integral part of Air Canada's
domestic and transborder market presence and strategy. Air Canada Jazz is
owned by Jazz Air Income Fund.
Air Canada Jazz is not a typical airline. The airline has a commercial
agreement with Air Canada that is the core of its business. Under the Capacity
Purchase Agreement (CPA), Air Canada currently purchases substantially all of
Air Canada Jazz's fleet capacity based on predetermined rates. The CPA
provides commercial flexibility, low trip costs and connecting network traffic
to Air Canada. Also, the CPA significantly reduces Air Canada Jazz's financial
and business risks, and provides a stable foundation for day-to-day operations
and future growth.