HALIFAX, April 24, 2017 /CNW/ - Chorus Aviation Inc. ('Chorus')
(TSX: CHR) announced today agreements by Chorus Aviation Capital's subsidiaries to acquire six ATR 72-600 aircraft with attached
leases from Avation PLC. Three of these aircraft are currently on lease to U.K. carrier, Flybe, and three to Virgin Australia
Airlines. The aircraft are between one and four years old and are the first ATRs added to Chorus Aviation Capital's growing
regional aircraft fleet.
Commenting on the planned purchase, Chorus Aviation Capital's President, Steven Ridolfi, said,
"We are delighted to announce this portfolio acquisition, adding two outstanding customers to our growing pool of airline
lessees, and welcoming the addition of the first ATRs to our diversifying fleet."
Joe Randell, President and Chief Executive Officer, Chorus, said, "This investment further
demonstrates the targeted expansion and growth strategy for Chorus into regional aircraft leasing. We are building a leading
global regional aircraft lessor and look forward to announcing additional opportunities in the months ahead."
The aggregate purchase price for the aircraft is consistent with current market values for similar aircraft, and Chorus
Aviation Capital intends to finance the purchase utilizing a combination of debt financing and cash with a leverage ratio of
between three and four to one. The transactions are expected to close by the end of June 2017 and
are subject to customary conditions precedent to closing, including novation of the existing leases and receipt of debt
financing.
About Chorus
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010. Chorus' vision is to deliver regional aviation to the world. Chorus owns Jazz Aviation
and Voyageur Aviation – companies that have long histories of safe and solid operations that deliver excellent customer service
in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul. 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 leading, global provider of regional aircraft leases and support services. Chorus Class A Variable Voting
Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol 'CHR'. For more information about
Chorus and its subsidiaries, see www.chorusaviation.ca.
Forward-Looking Information
This news release may contain "forward-looking information" as defined under applicable Canadian securities legislation.
Forward-looking information typically contains words such as "anticipate", "believe", "could", "should", "estimate", "expect",
"intend", "may", "plan", "predict", "project", "will", "would", and similar words and phrases, including references to
assumptions. Such information may involve but is not limited to comments with respect to strategies, expectations, planned
operations or future actions. Forward-looking information related 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 information, by its
nature, is based on assumptions, including those described below, and is 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. Factors that may cause results to differ materially from expectations in this news release include,
without limitation, that the conditions precedent to the closing of the transactions contemplated by this news release are not
fulfilled or waived by the parties. For a further discussion of risks, please refer to the section titled "Risk Factors" in
Chorus' 2016 Annual Information Form. Any statements containing forward-looking information in this news release represent
Chorus' expectations as of April 24, 2017. Chorus disclaims any intention or obligation to update
or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required
under applicable securities laws.
SOURCE Chorus Aviation Inc.
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