Chorus Aviation Inc. (“Chorus” or the “Company”) (TSX: CHR) announced today that it has completed its previously announced bought deal public offering (the “Offering”) of units of Chorus (the “Units”) and of convertible senior unsecured debentures (the “Debentures”) for aggregate gross proceeds of $115 million. Each Unit is comprised of one common share (the "Common Shares") of the Company which, for greater certainty, means Class B Voting Shares for Canadian investors and Class A Variable Voting Shares for non-Canadian investors, and one-half of a Common Share purchase warrant of the Company.
In connection with the Offering, the Company issued from treasury $57.5 million of Units and $57.5 million aggregate principal amount of Debentures, including $7.5 million of Units and $7.5 million aggregate principal amount of Debentures issued as a result of the full exercise of the over-allotment option granted to the syndicate of underwriters led by RBC Capital Markets, as bookrunner.
In addition, Chorus issued to Alberta Investment Management Corporation (“AIMCo”), on behalf of certain of its clients, and NordStar Capital an aggregate of $15 million of Units and $15 million aggregate principal amount of Debentures (the “Private Placement”).
The net proceeds of the Offering and the Private Placement will be used to position Chorus to pursue growth opportunities (including purchasing additional aircraft to continue expanding Chorus’ regional aircraft leasing business and expanding into additional contracted flying operations), provide additional balance sheet flexibility, repay indebtedness and for general corporate purposes.
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 Units and 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.