2021 Deal to raise $100M was an outstanding deal.Looking back at this deal, the share price for new units was awesome considering that nobody was flying because of COVID, now they are buying those shares back for half the price. Also the timing to issue $50M of debentures at a 6% interest rate was excellent.
I can't believe this is trading at such a low price today, I will be buying more.
HALIFAX, NS, March 16, 2021 /CNW/ - Chorus Aviation Inc. ("Chorus" or the "Company") (TSX: CHR) announced today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, as bookrunner, under which they have agreed to purchase from Chorus and sell to the public $50 million units of Chorus (the "Units") at a price of $4.60 per Unit (the "Unit Price") and $50 million aggregate principal amount of convertible senior unsecured debentures at a price of $1,000 per debenture, with an interest rate of 6% per annum, payable semi-annually on the last day of June and December commencing on December 31, 2021 and maturing on June 30, 2026 (the "Debentures"), resulting in combined gross proceeds to Chorus of $100 million (the "Offering"). If the Over-Allotment Option, as defined hereinafter, is exercised in full, gross proceeds to Chorus will amount to $115 million.