Chorus Aviation Inc. announces TSX approval to renew normal course issuer bid
HALIFAX, March 27, 2014 /CNW/ – Chorus Aviation Inc. ("Chorus") (TSX: CHR.B CHR.A CHR.DB) today announced that the Toronto Stock Exchange (the "TSX") has accepted its notice to make a normal course issuer bid ("NCIB") to purchase for cancellation up to a maximum of 12,168,157 of its Class A Variable Voting shares and/or Class B Voting shares (collectively, the "Shares"), representing 10% of the public float of the Shares.
The directors and management of Chorus believe that the market price of the Shares during the period of the bid may be such that the purchase of Shares by Chorus for cancellation would be in the best interests of Chorus and an appropriate use of corporate funds in light of potential benefits to remaining shareholders.
As of March 24, 2014, Chorus had 122,542,026 Shares issued and outstanding, of which 121,681,572 Shares constitute the total public float of the Shares. Purchases made pursuant to the bid will be made in the open market through the facilities of the TSX and/or alternative trading systems in accordance with the requirements of the TSX. Chorus is authorized to commence the bid on or about March 31, 2014 and have it remain in effect until March 30, 2015, or such earlier date as Chorus may complete its purchases pursuant to a Notice of Intention filed with the TSX. There can be no assurances as to how many Shares, if any, will be acquired by Chorus pursuant to this NCIB. Shares purchased by Chorus pursuant to the bid will be cancelled. On any trading day, Chorus will not purchase more than 83,346 Shares, except where such purchases are made in accordance with the block purchase exemptions under the TSX rules.
In connection with the NCIB, Chorus has established an automatic securities purchase plan (the "Plan") for the purchase of Shares. The Plan was established to provide standard instructions regarding how Shares are to be purchased under the NCIB. Accordingly, Chorus' designated broker may purchase Shares under the Plan on any trading day during the NCIB during pre-determined trading blackout periods. The Plan will commence immediately and terminate when the NCIB terminates, unless terminated earlier in accordance with its terms. Outside of these pre-determined blackout periods, Shares will be repurchased in accordance with management's discretion, subject to applicable law. Chorus may vary, suspend or terminate the Plan only if it does not have material non-public information and the decision to vary, suspend or terminate the Plan is not taken during a pre-determined trading blackout period. The Plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been reviewed by the TSX.
Under its previously approved NCIB program that will expire on March 17, 2014, as of February 28, 2014 Chorus had repurchased 1,871,800 Shares at an aggregate cost of approximately $4 million, representing a weighted average repurchase price of $2.13 per common share. All of the repurchased Shares were subsequently cancelled.
Forward Looking Statements
Certain statements in this news release may contain statements which are forward-looking. 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 relate 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 statements, by their nature, are based on assumptions, including those described below, 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 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. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, risks relating to Chorus' relationship with Air Canada, risks relating to the airline industry, energy prices, general industry, market, credit, and economic conditions, competition, insurance issues and costs, supply issues, war, terrorist attacks, epidemic diseases, environmental factors, acts of God, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, secure financing, employee relations, labour negotiations or disputes, restructuring, pension issues, currency exchange and interest rates, leverage and restructure covenants in future indebtedness, dilution of Chorus shareholders, uncertainty of dividend payments, managing growth, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties. The forward-looking statements contained in this discussion represent Chorus' expectations as of March 27, 2014, and are subject to change after such date. However, Chorus disclaims 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 securities regulations.
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010 and is a dividend-paying holding company which owns Jazz Aviation LP and a number of other companies involved in aviation related businesses.
Chorus is traded on the Toronto Stock Exchange under the trading symbols of CHR.A, CHR.B and CHR.DB.
For more information, visit www.chorusaviation.ca
Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. Jazz is wholly owned by Chorus Aviation Inc. and continues to generate some of the strongest operational and financial results in the North American aviation industry. As the largest regional in Canada, Jazz has a proven track record of industry leadership and exceptional customer airline service, and has leveraged that strength to deliver value to all its stakeholders. The Company operates more flights and flies to more Canadian destinations than any other airline and has a workforce of approximately 4,760 professionals highly experienced in the challenging and complex nature of regional operations. Jazz employees are an integral part of communities across our nation with 20% of our workforce based in Atlantic Canada, 46% based in Central Canada, 33% based in Western Canada, and 1% in Northern Canada.
Under a capacity purchase agreement with Air Canada, using the Air Canada Express brand, Jazz provides service to and from lower-density markets as well as higher-density markets at off-peak times throughout Canada and to and from certain destinations in the United States. This month, Jazz is operating scheduled passenger service on behalf of Air Canada with approximately 750 departures per weekday to 54 destinations in Canada and to 26 destinations in the United States. With a fleet of 122 Canadian-made Bombardier aircraft, Jazz flies more daily flights to more Canadian destinations than any other airline.
Under the Jazz brand, the airline offers charters throughout North America with a dedicated fleet of three Bombardier aircraft for corporate clients, governments, special interest groups and individuals seeking more convenience. Jazz also has the ability to offer airline operators services such as ground handling, dispatching, flight load planning, training and consulting.
For more information, visit www.flyjazz.ca.
SOURCE Chorus Aviation Inc.