CHORUS AVIATION ANNOUNCES THE PARTIAL REDEMPTION OF ITS SENIOR DEBENTURES 6.00%

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HALIFAX, NS, December 31, 2021 / CNW / – Chorus Aviation Inc. (“Chorus”) (TSX: CHR) announces today that it has acquired $ 85,000,000 principal amount (the “Redeemed Debentures”) of the 6% Chorus Senior Debentures due December 31, 2024 (the “6.00% Debentures”). Following this redemption, $ 115,000,000 total principal of 6.00% The debentures remain currently outstanding.

The redeemed debentures were redeemed at par (being $ 1,000 for each $ 1,000 principal of debentures redeemed), plus accrued and unpaid interest up to the date of redemption, but excluding. The redemption was financed with the net proceeds of the 5.75% senior unsecured debentures due. June 30, 2027 (published by Chorus on September 27, 2021), as well as the available liquidity of Chorus.

The 6.00% Debentures are secured by certain Dash 8-100 and Dash 8-300 and real estate owned by subsidiaries of Chorus (the “Collateral”). The collateral will be released on the earliest of the following dates: (i) Fairfax Financial Holdings Limited, its subsidiaries or affiliates (collectively, “Fairfax”) ceasing to hold 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 allowing their holder to acquire, upon exercise of each warrant and subject to certain adjustments, one class A variable voting share or one class B voting share of Chorus at a price of $ 8.25 per share (the “warrants”). Warrants may be exercised until the first of the following two events: (i) the business day immediately preceding the maturity date of the 6.00% Debentures and (ii) the date on which all 6.00% Debentures, 00% were redeemed.

Forward-looking information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information is identified by the use of terms and expressions such as “anticipate”, “believe”, “might”, “estimate”, “expect”, “intend”, “might” , “plan”, “predict”, “potential”, “project”, “will”, “would” and similar terms and expressions, including references to hypotheses. 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 forward-looking information. Examples of statements containing forward-looking information in this press release include the early redemption of the 6.00% Debentures. The results shown in the 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 in the Management’s Discussion and Analysis of Results of Operations and Financial Condition. . Statements containing forward-looking information in this press release are made as of the date of this press release and Chorus assumes no obligation to publicly update such statements to reflect new information, subsequent events or otherwise, except as required. by applicable securities laws.

About Chorus Aviation Inc.

Chorus is a global provider of integrated regional aviation solutions. Chorus’s vision is to provide regional aviation to the world. Based at Halifax, Nova Scotia, Chorus is comprised of Chorus Aviation Capital, one of the world’s leading regional aircraft lessors, and Jazz Aviation and Voyageur Aviation – companies with a long history of safe operation with excellent customer service. Chorus provides a full suite of regional aviation support services that encompass all stages of the aircraft life cycle, including the acquisition and leasing of aircraft; refurbishment, engineering, modification, reassignment and preparation of aircraft; flight contract; maintenance, disassembly and procurement of aircraft parts and components.

The Class A Variable Voting Shares and Class B Voting Shares of Chorus trade on the Toronto Stock Exchange under the symbol “CHR”. 6.00% Chorus Debentures, 5.75% Senior Unsecured Debentures Due December 31, 20246.00% senior unsecured convertible debentures due June 30, 2026, and 5.75% of senior unsecured debentures due June 30, 2027 trade on the Toronto Stock Exchange under the symbols “CHR.DB”, “CHR.DB.A”, “CHR.DB.B” and “CHR.DB.C”, respectively. www.chorusaviation.com

SOURCE Chorus Aviation Inc.

Cision See original content: http://www.newswire.ca/en/releases/archive/December2021/31/c1086.html


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