Halifax, August 29, 2022 - Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced that its subsidiary, Falko Regional Aircraft Limited (’Falko’) has executed agreements to sell 8 wholly owned aircraft that had previously been on lease, for net proceeds of approximately USD $45 million after related debt repayments and estimated tax provisions. The Falko team has an extensive track record of opportunistically selling aircraft, having completed over 160 aircraft sales.
“I’m pleased to report that the first trading transaction of the Chorus/Falko era is taking place. This deal is transacting at one time book value and will generate net free cash flow of approximately USD $45 million,” stated Joe Randell, President and Chief Executive Officer, Chorus.
Mr. Randell continued, “The recent Falko acquisition has made Chorus a market leading regional aircraft asset manager and the world’s largest aircraft lessor focused solely on the regional aircraft leasing space, significantly advancing our growth and diversification strategy.”
“The sale of these Chorus owned aircraft decreases debt and leverage while generating cash flows from trading. We will continue to look for opportunistic asset sale transactions to increase shareholder value,” concluded Mr. Randell.
This transaction is expected to close before the end of the third quarter of 2022 and is not expected to materially change the financial forecast set out in Chorus’ news release dated August 4, 2022.