Chorus Aviation has entered into an agreement with CIBC Capital Markets and RBC Capital Markets, as joint bookrunners, on behalf of a syndicate of underwriters consisting of Scotiabank, National Bank Financial Inc., TD Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., Cormark Securities Inc. and Paradigm Capital Inc.
The agreement will see the underwriters purchase $75 million aggregate principal amount of senior unsecured debentures due December 31, 2024.
Chorus has also granted the underwriters an option to purchase up to an additional $11.25 million aggregate principal amount of debentures, on the same terms and conditions, exercisable in whole or in part, for a period of 30 days following the closing of the offering.
The debentures will bear interest from the date of issue at 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 net proceeds of the offering will be used to fund the growth of Chorus Aviation Capital 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.