Chorus Aviation Inc. (“Chorus” or the “Company”) (TSX: CHR) announced today that it has completed its previously announced bought deal public offering of $85 million aggregate principal amount of senior unsecured debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Offering”).

The net proceeds of the Offering will be used primarily to partially redeem existing indebtedness, including the Company’s 6.00% senior debentures due December 31, 2024 (the “6.00% Debentures”) and, in certain circumstances, the US$100 million revolving facility, as well as for working capital and general corporate purposes. The 6.00% Debentures are currently secured by certain Dash 8-100 and Dash 8-300 aircraft, as well as certain real estate owned by the Company’s subsidiaries. The security will be released once all of the 6.00% Debentures have been redeemed.

The Debentures bear interest at a rate of 5.75% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, commencing June 30, 2022, and will mature on June 30, 2027. The Debentures will commence trading today on the Toronto Stock Exchange under the symbol ‘CHR.DB.C’.

A syndicate of underwriters co-led by RBC Capital Markets, CIBC Capital Markets, Scotiabank and BMO Capital Markets, and including TD Securities Inc., National Bank Financial Inc., Cormark Securities Inc., Canaccord Genuity Corp. and Paradigm Capital Inc. acted as underwriters for the Offering.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful. The Debentures have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933 and other applicable securities laws.