Chorus Aviation announces partial redemption of its 6.00% Senior Debentures

HALIFAX, NS, Dec. 31, 2021 /CNW/ – Chorus Aviation Inc. ("Chorus") (TSX: CHR) announces that it has today redeemed $85,000,000 principal amount (the "Redeemed Debentures") of Chorus' 6% Senior Debentures due December 31, 2024 (the "6.00% Debentures"). As a result of this redemption, $115,000,000 aggregate principal amount of 6.00% Debentures currently remain outstanding.

The Redeemed Debentures were redeemed at par (being $1,000 for each $1,000 principal amount of Redeemed Debentures), plus accrued and unpaid interest to but excluding the Redemption Date.  The redemption was funded using the net proceeds of the 5.75% Senior Unsecured Debentures due June 30, 2027 (issued by Chorus on September 27, 2021), as well as Chorus' available cash resources.

The 6.00% Debentures are secured by certain Dash 8-100s and Dash 8-300s and real estate property owned by Chorus' subsidiaries (the "Collateral Security"). The Collateral Security will be released upon the earlier of (i) Fairfax Financial Holdings Limited, its subsidiaries or affiliates (collectively, "Fairfax") ceasing to own all of the issued and outstanding 6.00% Debentures and (ii) the redemption of all of the 6.00% Debentures.

In connection with the issuance of the 6.00% Debentures, Chorus issued 24,242,424.242 warrants to Fairfax entitling the holder thereof to acquire, on exercise of each warrant and subject to certain adjustments, one Class A Variable Voting Share or Class B Voting Share of Chorus at a price of $8.25 per share (the "Warrants"). The Warrants are exercisable up to and including the earlier of (i) the business day immediately preceding the maturity date of the 6.00% Debentures and (ii) the date that all of the 6.00% Debentures have been redeemed. 

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 repayment of the 6.00% Debentures. Results indicated in forward-looking information may differ materially from actual results for a number of reasons, including the risk factors 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.

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'. Chorus' 6.00% Debentures, 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior Unsecured Debentures due June 30, 2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange under the trading symbols 'CHR.DB', 'CHR.DB.A', 'CHR.DB.B', and 'CHR.DB.C', respectively.

SOURCE Chorus Aviation Inc.