Chorus Aviation announces three-year committed operating credit facility
HALIFAX, Aug. 30, 2017 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that it has entered into a three-year committed operating credit facility with CIBC and The Bank of Nova Scotia (‘Scotiabank’). CIBC is the lead arranger and administrative agent under the facility.
The facility provides Chorus and certain designated subsidiaries (collectively, the ‘Credit Parties’) with a committed limit of up to $50,000,000 with the opportunity to borrow up to a further $25,000,000 on a demand basis, subject in each case to a borrowing base calculation based principally on the value of eligible accounts receivable, inventory and equipment. This facility replaces $40,000,000 in demand operating credit facilities previously held by Chorus and certain of its subsidiaries.
The indebtedness under this facility is secured by all present and after-acquired personal property of the Credit Parties, excluding aircraft and engines. It contains customary representations, warranties and covenants, including maximum total leverage and fixed charge covenants. Chorus Aviation Capital Corp. and its subsidiaries are excluded from the definition of Credit Parties.
"This facility provides Chorus with additional working capital financing in support of our existing lines of business while we continue to execute against our growth and diversification strategy," said Joe Randell, President and Chief Executive Officer, Chorus. "We are delighted to partner with CIBC and Scotiabank and appreciate their confidence in Chorus’ business."
"We are very pleased to provide Chorus with this new banking facility and to help the Company during this exciting phase of its development" said Eric Métivier, Head of Corporate Banking for Canada at CIBC.
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010. Chorus’ vision is to deliver regional aviation to the world. Chorus owns Jazz Aviation and Voyageur Aviation – companies that have long histories of safe and solid operations that deliver excellent customer service in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul. Chorus has been leasing its owned regional aircraft into Jazz’s Air Canada Express operation since 2009, and recently established Chorus Aviation Capital to become a leading, global provider of regional aircraft leases and support services. Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol ‘CHR’. For more information about Chorus and its subsidiaries, see www.chorusaviation.ca.
This news release may contain "forward-looking information" as defined under applicable Canadian securities legislation. Forward-looking information typically contains words such as "anticipate", "believe", "could", "should", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar words and phrases, including references to assumptions. Such information may involve but is not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking information related to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and other uncertain events. Forward looking information, by its nature, is based on assumptions, including those described below, and is 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 and general uncertainties of the business. 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. For a further discussion of risks, please refer to the section titled "Risk Factors" in Chorus’ Annual Information Form dated February 15, 2017. Any statements containing forward-looking information in this news release represent Chorus’ expectations as of August 30, 2017. Chorus disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
SOURCE Chorus Aviation Inc.