LONDON, ON, Jan. 19 /CNW/ - Discovery Air Interim President and CEO,
David Jennings, today announced an agreement to borrow $34 million from the
Northwest Territories Opportunities Fund.
Commenting on the loan Mr. Jennings said "Our subsidiaries, Great Slave
Helicopters, Air Tindi and Discovery Mining Services, provide valuable
services in Canada's North and have been key members of the Northwest
Territories business community for many years."
The proceeds of the loan will be used to refinance the Corporation's $33
million mezzanine debt which matures February 1, 2009. The loan has a 48 month
term, bears interest at 10% per annum and is repayable in one balloon
principal amount at maturity. While completion of the loan remains subject to
the satisfaction of certain conditions, the Corporation expects the
transaction to close on or before February 1, 2009. Discovery Air also has
received an extension of the expiry date of its operating line of credit to
January 23, 2009 at a reduced borrowing limit of $5 million.
"This loan, which comes during unprecedented turmoil in global capital
markets, demonstrates the Government of the Northwest Territories' (GNWT)
commitment to these Northern businesses and to their over 400 employees from
all corners of the Northwest Territories. GNWT's support for these Northern
businesses demonstrates the government's commitment to maintaining a vibrant
Northern economy," said Mr Jennings. "We have committed to moving our
corporate head office to Yellowknife within the next 12 months. This will
position our corporate functions in closer proximity to our most significant
Northern operations and serve to further strengthen our ties to Canada's
The Northwest Territories Opportunities Fund was established by the GNWT
in order to participate in the federal Immigrant Investor Program.
Discovery Air's Class A common shares trade on the Toronto Stock Exchange
under the symbol DA.A
Discovery Air's Debentures trade on the Toronto Stock Exchange under the
For further information:
For further information: Wade MacBain, Director of Investor Relations,
Phone: (519) 951-3580, Toll Free: (866) 903-3247 ext. 3580, Email: