Chorus Aviation announces closing of $85 million bought deal offering of 5.75% Senior Unsecured Debentures

HALIFAX, September 27, 2021 – Chorus Aviation Inc. (“Chorus” or the “Company”) (TSX: CHR) announced today that it has completed its previously announced bought deal public offering of $85 million aggregate principal amount of senior unsecured debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Offering”).

The net proceeds of the Offering will be used primarily to partially redeem existing indebtedness, including the Company’s 6.00% senior debentures due December 31, 2024 (the “6.00% Debentures”) and, in certain circumstances, the US$100 million revolving facility, as well as for working capital and general corporate purposes. The 6.00% Debentures are currently secured by certain Dash 8-100 and Dash 8-300 aircraft, as well as certain real estate owned by the Company’s subsidiaries. The security will be released once all of the 6.00% Debentures have been redeemed.

The Debentures bear interest at a rate of 5.75% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, commencing June 30, 2022, and will mature on June 30, 2027. The Debentures will commence trading today on the Toronto Stock Exchange under the symbol ‘CHR.DB.C’.

A syndicate of underwriters co-led by RBC Capital Markets, CIBC Capital Markets, Scotiabank and BMO Capital Markets, and including TD Securities Inc., National Bank Financial Inc., Cormark Securities Inc., Canaccord Genuity Corp. and Paradigm Capital Inc. acted as underwriters for the Offering.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful. The Debentures have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933 and other applicable securities laws.

About Chorus

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; and 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’ 6.00% Debentures, 5.75% Senior Unsecured debentures, and 6.00% Convertible Senior Unsecured Debentures trade on the Toronto Stock Exchange under the trading symbols ‘CHR.DB’, ‘CHR.DB.A’, and ‘CHR.DB.B’, respectively.

Forward-Looking Information

This news release contains ‘forward-looking information’ as defined under applicable Canadian securities legislation. 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. Examples of statements containing forward-looking information in this news release include the anticipated use of proceeds of the Offering. Results indicated in forward-looking information may differ materially from actual results for a number of reasons, including a prolonged duration of the COVID-19 pandemic and/or further restrictive measures to contain its spread, the evolving impact of the COVID-19 pandemic on Chorus’ contractual counterparties, as well as those described in Chorus’ most recent Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition. 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.

Chorus Media Contacts:

Analyst Contact:
Nathalie Megann, (902) 873-5094,