Chorus Aviation has entered into a three-year committed operating credit facility with CIBC and The Bank of Nova Scotia (Scotiabank). CIBC is the lead arranger and administrative agent under the facility.
The facility provides Chorus and certain designated subsidiaries with a committed limit of up to $50 million and the opportunity to borrow up to a further $25 million on a demand basis, subject in each case to a borrowing base calculation based principally on the value of eligible accounts receivable, inventory and equipment. This facility replaces $40 million in demand operating credit facilities previously held by Chorus and certain of its subsidiaries.
“This facility provides Chorus with additional working capital financing in support of our existing lines of business while we continue to execute against our growth and diversification strategy,” said Joe Randell, president and CEO of Chorus. “We are delighted to partner with CIBC and Scotiabank and appreciate their confidence in Chorus’ business.”
“We are very pleased to provide Chorus with this new banking facility and to help the Company during this exciting phase of its development” said Eric Métivier, head of corporate banking for Canada at CIBC.
Headquartered in Nova Scotia, Chorus owns Jazz Aviation and Voyageur Aviation. Chorus has been leasing its owned regional aircraft into Jazz’s Air Canada Express operation since 2009, and recently established Chorus Aviation Capital to become a global provider of regional aircraft leases and support services.