Chorus Aviation announces new three-year committed operating credit facility

HALIFAX, NS, Oct. 14, 2021 /CNW/ - Chorus Aviation Inc. ("Chorus") (TSX: CHR) announced today that it has entered into an agreement for a three-year committed operating credit facility (the "New Facility") with The Bank of Nova Scotia ("Scotiabank") as lender, sole lead arranger, bookrunner, administrative agent and issuing bank, and the Canadian Imperial Bank of Commerce ("CIBC") and the Bank of Montreal as lenders. The New Facility replaces Chorus' credit facility (the "Prior Facility") under the second amended and restated credit agreement dated June 28, 2019 (as amended) which provided a $75 million committed limit and was scheduled to mature in August 2022.

The New Facility provides Chorus and certain designated subsidiaries including Chorus Aviation Capital Corp., Jazz Aviation LP and Voyageur Aviation Corp. (collectively, the "Credit Parties") with a committed limit of up to $75 million, subject to a borrowing base calculation, plus a $25 million uncommitted accordion. The New Facility is secured by all present and after-acquired personal property of the Credit Parties, excluding certain specified assets which include aircraft and engines and the equity securities of Chorus Aviation Capital Corp. and its subsidiaries. It contains customary representations, warranties and covenants, including a covenant to maintain a minimum consolidated interest coverage ratio.  A copy of the New Facility is available under Chorus' profile on SEDAR at www.sedar.com.

In connection with Chorus entering into the agreement for the New Facility, the trustees (collectively, the "Trustees") under the indentures for Chorus' 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 (collectively, the "Debentures") entered into, in their capacity as trustee for and on behalf of the holders of the relevant Debentures, intercreditor agreements (the "Intercreditor Agreements") with Scotiabank, in its capacity as administrative agent for and on behalf of the lenders under the New Facility. The Intercreditor Agreements are on substantially similar terms as the intercreditor agreements that were entered into by each of the Trustees with the administrative agent for and on behalf of the lenders under the Prior Facility. Copies of the Intercreditor Agreements are available under Chorus' profile on SEDAR at www.sedar.com.

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. For further information, please visit Chorus' website: www.chorusaviation.com.

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 due December 31, 2024, 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.

Forward Looking Information

This news release may contain '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. 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 the risks 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.

SOURCE Chorus Aviation Inc.

Chorus Media Contacts: [email protected]; Analyst Contact: Nathalie Megann, [phone], [email protected]