HALIFAX, March 27, 2014 /CNW/ - Chorus Aviation Inc. ("Chorus") (TSX: CHR.B CHR.A CHR.DB) today announced that the Toronto Stock Exchange (the "TSX") has accepted its notice to make a normal course issuer bid ("NCIB") to purchase for cancellation up to a maximum of 12,168,157 of its
Class A Variable Voting shares and/or Class B Voting shares
(collectively, the "Shares"), representing 10% of the public float of the Shares.
The directors and management of Chorus believe that the market price of
the Shares during the period of the bid may be such that the purchase
of Shares by Chorus for cancellation would be in the best interests of
Chorus and an appropriate use of corporate funds in light of potential
benefits to remaining shareholders.
As of March 24, 2014, Chorus had 122,542,026 Shares issued and
outstanding, of which 121,681,572 Shares constitute the total public
float of the Shares. Purchases made pursuant to the bid will be made in
the open market through the facilities of the TSX and/or alternative
trading systems in accordance with the requirements of the TSX. Chorus
is authorized to commence the bid on or about March 31, 2014 and have
it remain in effect until March 30, 2015, or such earlier date as
Chorus may complete its purchases pursuant to a Notice of Intention
filed with the TSX. There can be no assurances as to how many Shares,
if any, will be acquired by Chorus pursuant to this NCIB. Shares
purchased by Chorus pursuant to the bid will be cancelled. On any
trading day, Chorus will not purchase more than 83,346 Shares, except
where such purchases are made in accordance with the block purchase
exemptions under the TSX rules.
In connection with the NCIB, Chorus has established an automatic
securities purchase plan (the "Plan") for the purchase of Shares. The Plan was established to provide
standard instructions regarding how Shares are to be purchased under
the NCIB. Accordingly, Chorus' designated broker may purchase Shares
under the Plan on any trading day during the NCIB during pre-determined
trading blackout periods. The Plan will commence immediately and
terminate when the NCIB terminates, unless terminated earlier in
accordance with its terms. Outside of these pre-determined blackout
periods, Shares will be repurchased in accordance with management's
discretion, subject to applicable law. Chorus may vary, suspend or
terminate the Plan only if it does not have material non-public
information and the decision to vary, suspend or terminate the Plan is
not taken during a pre-determined trading blackout period. The Plan
constitutes an "automatic plan" for purposes of applicable Canadian
securities legislation and has been reviewed by the TSX.
Under its previously approved NCIB program that will expire on March 17,
2014, as of February 28, 2014 Chorus had repurchased 1,871,800 Shares
at an aggregate cost of approximately $4 million, representing a
weighted average repurchase price of $2.13 per common share. All of the
repurchased Shares were subsequently cancelled.
Forward Looking Statements
Certain statements in this news release may contain statements which are
forward-looking. These forward-looking statements are identified by the
use of terms and phrases such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "predict", "project",
"will", "would", and similar terms and phrases, including references to
assumptions. Such statements may involve but are not limited to
comments with respect to strategies, expectations, planned operations
or future actions.
Forward-looking statements relate to analyses and other information that
are based on forecasts of future results, estimates of amounts not yet
determinable and other uncertain events. Forward-looking statements, by
their nature, are based on assumptions, including those described
below, and are subject to important risks and uncertainties. Any
forecasts or forward-looking predictions or statements cannot be relied
upon due to, amongst other things, changing external events and general
uncertainties of the business. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements to differ materially from
those expressed in the forward-looking statements. Results indicated in
forward-looking statements may differ materially from actual results
for a number of reasons, including without limitation, risks relating
to Chorus' relationship with Air Canada, risks relating to the airline
industry, energy prices, general industry, market, credit, and economic
conditions, competition, insurance issues and costs, supply issues,
war, terrorist attacks, epidemic diseases, environmental factors, acts
of God, changes in demand due to the seasonal nature of the business,
the ability to reduce operating costs and employee counts, secure
financing, employee relations, labour negotiations or disputes,
restructuring, pension issues, currency exchange and interest rates,
leverage and restructure covenants in future indebtedness, dilution of
Chorus shareholders, uncertainty of dividend payments, managing growth,
changes in laws, adverse regulatory developments or proceedings,
pending and future litigation and actions by third parties. The
forward-looking statements contained in this discussion represent
Chorus' expectations as of March 27, 2014, and are subject to change
after such date. However, Chorus disclaims any intention or obligation
to update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
under applicable securities regulations.
About Chorus
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on
September 27, 2010 and is a dividend-paying holding company which owns
Jazz Aviation LP and a number of other companies involved in aviation
related businesses.
Chorus is traded on the Toronto Stock Exchange under the trading symbols
of CHR.A, CHR.B and CHR.DB.
For more information, visit www.chorusaviation.ca
About Jazz
Jazz Aviation LP has a strong history in Canadian aviation with its
roots going back to the 1930s. Jazz is wholly owned by Chorus Aviation
Inc. and continues to generate some of the strongest operational and
financial results in the North American aviation industry. As the
largest regional in Canada, Jazz has a proven track record of industry
leadership and exceptional customer airline service, and has leveraged
that strength to deliver value to all its stakeholders. The Company
operates more flights and flies to more Canadian destinations than any
other airline and has a workforce of approximately 4,760 professionals
highly experienced in the challenging and complex nature of regional
operations. Jazz employees are an integral part of communities across
our nation with 20% of our workforce based in Atlantic Canada, 46%
based in Central Canada, 33% based in Western Canada, and 1% in
Northern Canada.
Under a capacity purchase agreement with Air Canada, using the Air
Canada Express brand, Jazz provides service to and from lower-density
markets as well as higher-density markets at off-peak times throughout
Canada and to and from certain destinations in the United States. This
month, Jazz is operating scheduled passenger service on behalf of Air
Canada with approximately 750 departures per weekday to 54 destinations
in Canada and to 26 destinations in the United States. With a fleet of
122 Canadian-made Bombardier aircraft, Jazz flies more daily flights to
more Canadian destinations than any other airline.
Under the Jazz brand, the airline offers charters throughout North
America with a dedicated fleet of three Bombardier aircraft for
corporate clients, governments, special interest groups and individuals
seeking more convenience. Jazz also has the ability to offer airline
operators services such as ground handling, dispatching, flight load
planning, training and consulting.
For more information, visit www.flyjazz.ca.
SOURCE Chorus Aviation Inc.
