Chorus Aviation Inc. ('Chorus') (TSX: CHR) is pleased to announce that the underwriters of its offering of 5.75% senior unsecured debentures (the ‘Debentures’) exercised in full their over-allotment option resulting in the issue of an additional $11,250,000 aggregate principal amount of Debentures, bringing the total offering to $86,250,000 aggregate principal amount of Debentures.

The net proceeds of the offering will be used to fund the growth of Chorus Aviation Capital (Chorus’ aircraft leasing business), including the acquisition of aircraft intended for or currently on lease to third parties, as well as for working capital requirements and other general corporate purposes.

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, 2020, and will mature on December 31, 2024. The Debentures are listed for trading on the Toronto Stock Exchange under the symbol ‘CHR.DB.A’.

Subject to any required regulatory approval and provided no event of default has occurred and is continuing under the terms of the indenture governing the Debentures, Chorus will have the option to satisfy its obligation to pay the principal amount of the Debentures due at redemption or maturity (together with any applicable premium) by delivering freely tradeable Class B Voting Shares (‘Class B Shares’) to holders of the Debentures (‘Debentureholders’) who are Canadians (as defined in the Canada Transportation Act (‘Qualified Canadians’) or Class A Variable Voting Shares (‘Class A Shares’ and, together with the Class B Shares, the ‘Voting Shares’) to Debentureholders who are not Qualified Canadians.

The Debentures are not convertible into Voting Shares by Debentureholders at any time.

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

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 such Act. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.