Chorus Aviation Announces President & Chief Executive Officer Succession

HALIFAX, NS, Sept. 14, 2022 /CNW/ – The Board of Directors of Chorus Aviation Inc. (‘Chorus’ or the ‘Company’) (TSX: CHR) announced today that Joseph (Joe) Randell plans to retire as President and Chief Executive Officer, in the first quarter of 2023, following the Company’s reporting of its 2022 year-end results.  His retirement will follow a 37-year leadership career in regional aviation. Upon Mr. Randell’s retirement, Colin Copp, currently the Chief Operating Officer, Chorus and President, Chorus Aviation Services, will be appointed President and Chief Executive Officer of Chorus.  

“I am delighted to announce Colin Copp as our next CEO,” said Paul Rivett, Chair of the Chorus Board of Directors. Mr. Rivett continued, “Chorus is fortunate to have a CEO successor in Colin Copp, with such an in-depth knowledge of the business and its culture.  Colin has played an instrumental role in Chorus’ evolution, displaying a proven ability to think strategically, to communicate his vision and to successfully execute on the intended plans. The Board looks forward to working with Colin and is confident in Colin’s ability to guide Chorus through the next exciting chapter of growth and diversification.”

Mr. Copp has been the Chief Operating Officer of Chorus and President of Chorus Aviation Services, including Jazz Aviation and Voyageur Aviation, since March 2019.  Previously, he was the President of Jazz Aviation. He has been with the Company and its predecessors for over 30 years, with leadership experience in key roles across operations, administration, and labour relations.  Colin holds a Masters’ Degree in Business Administration, is a Certified Negotiator and Chartered Mediator and holds a designation from the Institute of Corporate Directors (ICD.D). He is currently a Board member of the Air Transport Association of Canada and the Aerospace Industries Association of Canada.

“Colin has been an integral member of my leadership team for almost two decades and has proven to be an exemplary leader with demonstrated skills in handling complicated change management issues and multi-stakeholder negotiations,” said Joe Randell. “He has built strong relationships across the aviation industry and elevated Jazz and Voyageur to new levels of performance.  I am confident Colin will adeptly and successfully lead Chorus through the next transformative phase, and I look forward to working closely with Colin, and the rest of the executive team, as he transitions to the CEO role.”

Mr. Randell’s regional aviation career spans four decades. He was the founding President of Air Nova, having started the Atlantic Canada-based airline in 1986 with two aircraft serving five destinations.  He will retire having built a global company with approximately 5,000 employees, which includes the largest regional airline in Canada, a market leading aircraft asset management company and the world’s largest aircraft lessor solely focused on the regional segment. Mr. Randell has provided stable leadership and successfully executed a long-term vision for Chorus through the most challenging periods for the aviation industry.  In 2020, he was inducted into the Canadian Aviation Hall of Fame in recognition of his significant contribution in advancing Canadian aviation.

“Joe is widely recognized as the founder and builder of regional aviation in Canada,” said Mr. Rivett. “He has been a true visionary, continuing to re-invent the business through various cycles and trends in the industry.  Joe is equally respected for his ethics and integrity, which has resulted in many strong industry and community relationships and partnerships.  His own personal values have shaped an award-winning corporate culture.  On behalf of the Board and the employees of the Chorus companies, I thank Joe for his long-standing dedication and commitment, including his support through the upcoming transition.”

About Chorus Aviation Inc.

Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.

www.chorusaviation.com.

Chorus Aviation Announces Agreements to Trade 8 Aircraft for Net Proceeds of USD $45 Million

HALIFAX, NS, Aug. 29, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced that its subsidiary, Falko Regional Aircraft Limited (‘Falko’) has executed agreements to sell 8 wholly owned aircraft that had previously been on lease, for net proceeds of approximately USD $45 million after related debt repayments and estimated tax provisions. The Falko team has an extensive track record of opportunistically selling aircraft, having completed over 160 aircraft sales.

“I’m pleased to report that the first trading transaction of the Chorus/Falko era is taking place. This deal is transacting at one time book value and will generate net free cash flow of approximately USD $45 million,” stated Joe Randell, President and Chief Executive Officer, Chorus.

Mr. Randell continued, “The recent Falko acquisition has made Chorus a market leading regional aircraft asset manager and the world’s largest aircraft lessor focused solely on the regional aircraft leasing space, significantly advancing our growth and diversification strategy.”

“The sale of these Chorus owned aircraft decreases debt and leverage while generating cash flows from trading. We will continue to look for opportunistic asset sale transactions to increase shareholder value,” concluded Mr. Randell.

This transaction is expected to close before the end of the third quarter of 2022 and is not expected to materially change the financial forecast set out in Chorus’ news release dated August 4, 2022.

About Chorus Aviation Inc. 
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services.   Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world.  Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.

Chorus Aviation Announces Second Quarter 2022 Financial Results

Q2 2022 Financial Highlights

  • Net loss of $40.4 million, a quarter-over-quarter decrease of $61.9 million primarily due to anticipated aircraft repossessions and lease restructurings resulting in provisions of $45.6 million on CACIL’s aircraft portfolio, unrealized foreign exchange losses of $34.3 million and strategic advisory fees of $5.7 million, offset by an increase in Adjusted net income of $16.2 million.
  • Net loss available to Common Shareholders of $46.3 million, or $0.24 loss per basic Common Share, inclusive of dividends declared on Preferred Shares and non-controlling interest.
  • Adjusted net income available to Common Shareholders of $21.7 million, or $0.11 per Common Share an increase of $10.3 million quarter-over-quarter inclusive of dividends declared on Preferred Shares and non-controlling interest.
  • Adjusted net income of $27.6 million, an increase of $16.2 million quarter-over-quarter primarily due to an increase in earnings in the RAL segment related to the Falko Business.
  • Adjusted EBITDA of $104.9 million, an increase of $28.0 million quarter-over-quarter.

Accomplishments

  • Completed the Falko acquisition for US $843.7 million, inclusive of assumed debt.
  • Second quarter results included two months of earnings from the Falko Business, increasing net income by $5.7 million and Adjusted EBT by $9.5 million.
  • Integration of the Falko Business progressing as anticipated.
  • Expanded owned, managed and/or operated fleet to 381 aircraft (including 35 aircraft in a servicing capacity).

HALIFAX, NS, Aug. 4, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced second quarter 2022 financial results.

“With our first quarter since the Falko acquisition now complete, I am happy to see Falko delivering the expected results. In addition, the integration of Falko is progressing very well as both organizations share similar leadership styles and cultures. 

We have already begun to see the Falko asset management platform demonstrate its contribution to the diversification and flexibility of our business.  In June we announced the addition of 35 turboprop aircraft in a servicing capacity on behalf of a syndicate of banks further expanding our asset management business and demonstrating Falko’s ability to broaden its customer base,” stated Joe Randell, President and Chief Executive Officer, Chorus.

Mr. Randell continued: “The Falko acquisition has made Chorus a market leading regional aircraft asset manager and the world’s largest aircraft lessor focused solely on the regional aircraft leasing space thereby significantly advancing our growth and diversification strategy. We now expect to derive approximately 50% of our 2022 annual Adjusted EBITDA from the Regional Aviation Leasing (RAL) segment of our business. We have begun the process of launching Falko’s next fund and are pleased with the early response. We will continue to transition our focus to an asset light model and will opportunistically explore asset sales, where appropriate, to create additional shareholder value through paying down debt and generating incremental cash flows.”

“In the second quarter we recorded a $45.6 million provision related to anticipated aircraft repossessions and lease restructurings. All our other customers are operating in compliance with lease agreements. This provision does not impact our longer-term outlook for the business,” added Mr. Randell.

“I sincerely thank the Chorus group of employees for all their hard work and dedication, and in particular our frontline employees, for their continued focus on the safety and well-being of passengers in what has been a challenging environment. Our Jazz operation continues to ramp up, and Voyageur’s parts provisioning and sales continue to hit new milestones as larger contracts won in 2021 progress as planned. We remain optimistic that these trends will continue to build momentum and we are very well positioned to execute on new growth opportunities that will deliver positive returns to our shareholders, fund investors, customers, and employees,” Mr. Randell concluded.

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Voyageur Aviation expands portfolio with parts provisioning of ATR aircraft type

HALIFAX, NS, July 12, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced that its subsidiary, Voyageur Aviation Corp. (‘Voyageur’), has added ATR 42 and 72 aircraft types to its product offering, further diversifying Chorus’ business and cross-company support capabilities.

“The growth momentum for Voyageur Avparts continues,” said Gary Gilbert, Vice President Avparts, Voyageur. “Expanding our parts sales and provisioning with ATR components was a logical next move for Voyageur, especially given Chorus’ recent acquisition of Falko Regional Aircraft – further bolstering Chorus’ position as a premier full-service provider in regional aviation. We are fortunate to capitalize on our companies’ synergies to further support regional aircraft customers at every stage of an aircraft’s lifecycle.”

Voyageur’s Avparts division specializes in Used Serviceable Material (‘USM’) support for regional aircraft types, including Bombardier/Mitsubishi CRJ, De Havilland Dash 8, and ATR. Core services include parts sale and provisioning, component repair and overhaul management, inventory leasing and consignment programs, and aircraft end-of-life and disassembly.

About Voyageur Aviation Corp.

Voyageur is an integrated provider of specialized aviation services, including contract flying operations both internationally and domestically, and offers advanced engineering and maintenance capabilities. Headquartered in North Bay, Ontario, Voyageur delivers innovative solutions to customers with unique aviation requirements and operates under the core principles of comprehensive safety management, quality assurance, and client-dedicated solutions. www.voyav.com

About Chorus Aviation Inc.

Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com

Chorus Aviation Announces Expansion of Assets Under Management

HALIFAX, NS, June 21, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced that its wholly owned subsidiary, Falko Regional Aircraft Limited (“Falko”), has expanded its portfolio of assets under management.

Falko has added a total of 35 turboprop aircraft to its portfolio in a servicing capacity on behalf of a syndicate of banks. 

Joe Randell, President and Chief Executive Officer, Chorus stated “I’m pleased to see the continued expansion of our asset management business and to demonstrate the ability of Falko to continue to diversify its customer base.”

“This transaction further validates our belief in the attractiveness of the regional aircraft market and in Falko, as a market-leading aircraft asset management company,” Mr. Randell concluded.

This transaction is not expected to impact the financial forecast set out in Chorus’ news release dated May 5, 2022.

About Chorus Aviation Inc.

Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services.   Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest aircraft lessor and asset manager focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world.  Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com

Chorus Aviation publishes 2021 corporate sustainability report

HALIFAX, NS, May 24, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today published its 2021 corporate sustainability report, available online at www.chorusaviation.com/sustainability. The report highlights Chorus’ commitment to building a sustainable future and improving transparency and accountability in relation to environmental, social and governance (“ESG”) issues.

“In 2021, we transformed our corporate sustainability initiatives into an ESG strategy that aligns with our values and the issues that matter most to our stakeholders,” stated Joe Randell, President and Chief Executive Officer, Chorus. “The corporate sustainability report discusses our ESG performance in 2021 and articulates our ESG strategy with reference to measurable targets that will challenge us to make tangible improvements in the years to come.”

Chorus established its ESG strategy by:

  • aligning to globally recognized frameworks such as the Global Reporting Index (GRI) and United Nations Sustainable Development Goals (UN SDGs);
  • undertaking a materiality assessment to identify key ESG issues that are important to its stakeholders and its business;
  • developing a purpose statement that resonates with stakeholders in its ecosystem;
  • reconfiguring its sustainability governance structure to focus on initiatives, quantification, and stakeholder engagement; and
  • challenging Chorus to continually improve by establishing ambitious, long-term goals and targets.

Chorus’ ESG strategy includes a detailed implementation road map that will focus the organization on key initiatives to achieve its sustainability goals.

“We are proud of the progress we have made in our commitment to sustainability, and we look forward to implementing our ESG strategy,” concluded Mr. Randell.

About Chorus Aviation Inc.

Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services.   Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest aircraft lessor and asset manager focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world.  Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.

Chorus Aviation completes acquisition of Falko Regional Aircraft

Creates world’s largest aircraft lessor focused solely on serving the regional aviation segment

HALIFAX, NS, May 3, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announces that it has completed its acquisition of Falko Regional Aircraft Limited (‘Falko’), as previously announced on February 27, 2022. This acquisition transforms Chorus into a premier full-service provider in regional aviation with unique capabilities to maximize value at every stage of an aircraft’s lifecycle.  The completion of this transaction establishes Chorus as the world’s largest aircraft lessor focused solely on investing in the regional aircraft leasing space, and results in a portfolio of 348 regional aircraft with an aggregate value of approximately US$4.5 billion which are owned, managed, and/or operated by Chorus subsidiaries. As contemplated by the acquisition agreement, Chorus expects to acquire the beneficial interests in five aircraft trusts on a deferred basis prior to the end of the second quarter of 2022 (subject to the satisfaction or waiver of specified conditions applicable to those transactions) bringing the total to 353 aircraft.

“I’m extremely pleased and very optimistic about our future growth opportunities,” said Joe Randell, President and Chief Executive Officer, Chorus. “This transformative acquisition establishes Chorus as the world’s largest aircraft lessor focused on the regional aviation segment and a leading worldwide provider in all aspects of regional aviation.  Further, the transaction is expected to be accretive to earnings and earnings per share in 2022.  With the addition of Falko’s asset management platform, we will shift to growing our leasing business through an asset light model, significantly increasing cash flow generation, improving return on invested capital, and facilitating the pursuit of larger deals with more efficient access to equity capital. Growth through accessing third party capital reduces balance sheet exposure, lowering debt and residual value asset risk, while also enhancing stability and diversity of earnings, through asset management fees.   The combined leasing platforms also present a broadened market opportunity covering the full age spectrum of regional aircraft from new deliveries to mid and end-of-life aircraft.  Chorus’ technical skills and capabilities, including aircraft repurposing, end of life disassembly, and parts provisioning and sales, provide multiple opportunities to maximize returns on aircraft assets.”

Concurrent with the closing of the Falko acquisition, Chorus closed the private placement with an affiliate of Brookfield Special Investments Fund L.P. (‘Brookfield’) as previously announced on February 27, 2022.  As a result of this transaction, Brookfield beneficially owns 25,400,000 (Class B Voting Shares) of Chorus (representing approximately 12.5% of Chorus’ issued and outstanding common shares of Chorus), 300,000 Series 1 Preferred Shares of Chorus and 18,642,772 common share purchase warrants. Chorus and Brookfield also entered into an Investor Rights Agreement in connection with Brookfield’s investment. This new relationship with Brookfield gives Chorus access to their extensive experience in asset management, fundraising and capital markets.

“I’m deeply grateful to our team for delivering significant value to our employees, customers, and shareholders. The Chorus Aviation Capital team’s dedication to growth since its inception in 2017 has helped make this significant milestone a reality; they are a terrific complement to the Falko team, and we are very pleased to welcome the Falko employees to the Chorus group.  Our immediate priority is to seamlessly integrate operations and ensure the successful execution of the opportunities this transaction brings. We believe the timing of this endeavour is opportune as global air travel continues to resume and demand for regional aircraft leasing increases,” concluded Mr. Randell.

In accordance with the terms of the Investor Rights Agreement between Chorus and Brookfield, Mr. David Levenson, Managing Partner and Global Head of Brookfield Special Investments, and Frank Yu, Managing Director, Brookfield Special Investments have been appointed to the Chorus board of directors. (Bios for Messrs. Levenson and Yu are available on Chorus’ website at www.chorusaviation.com). In addition, Mr. Paul Rivett has been appointed Chair of the Chorus Board of Directors. Paul joined Chorus’ board in 2021 and is the co-founder and Chairman of NordStar Capital Inc., a company he co-founded in 2020. Prior to co-founding NordStar, he served as the President of Fairfax Financial Holdings Limited, a global insurance holdings and value investing company, where he worked for nearly two decades. Chorus’ former Chair of the Board, Mr. Richard Falconer and director, Mr. Sydney John Isaacs, elected to retire from the Chorus Board effective today, thereby enabling the immediate appointment of the Brookfield nominees.  The Chorus team is very indebted for their dedication and commitment, and sincerely thank them for their service.

Transaction Highlights

Increased size and scale:

  •  Portfolio of 348 owned, operated, and/or managed aircraft with 32 airlines in 23 countries.
  • Market opportunities are broadened and enhanced by strengthened market competitiveness and ability to execute larger leasing transactions.
  • Full suite of service offerings and full age spectrum of aircraft provides the ability to offer value-added solutions to customers.
  • Best-in-class trading platform with deep market insight and relationships.

Financially accretive in the first year:

  •  Earnings and EPS in 2022 creating an attractive financial profile.
  • Asset management model increases cash flow generation, improves return on invested capital, lowers the cost of capital and balance sheet risk.
  • Diversifies revenue streams and provides access to larger pools of capital to accelerate growth.
  • Brookfield’s investment immediately reduces net leverage.
  • Multiple aircraft exit strategies provide enhanced shareholder returns.
  • Well-capitalized to pursue further growth opportunities across multiple acquisition channels.

Exceptional expertise in asset management, capital raising and markets:

  •  Combines best-in-class management teams in regional aviation with over 200 years experience.
  • Establishes Brookfield as a strategic investor with a 12.5% common share stake and adds Brookfield’s expertise to Chorus’ Board of Directors.

Additional information including key metric projections for the balance of fiscal 2022 will be provided concurrent with Chorus’ first quarter 2022 financial disclosure on May 5, 2022.

About Chorus Aviation Inc.
Chorus is a global provider of integrated regional aviation solutions. Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is comprised of Chorus Aviation Capital a leading lessor of regional aircraft, and Jazz Aviation and Voyageur Aviation – companies that have long histories of safe operations with excellent customer service. Chorus provides a full suite of regional aviation support services that encompasses every stage of an aircraft’s lifecycle, including aircraft acquisitions and leasing; aircraft refurbishment, engineering, modification, repurposing and preparation; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.

Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol ‘CHR’. Chorus 6.00% Senior Debentures, 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior Unsecured Debentures due June 30, 2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange under the trading symbols ‘CHR.DB’, ‘CHR.DB.A’, ‘CHR.DB.B’, and ‘CHR.DB.C’, respectively.

www.chorusaviation.com

About Falko Regional Aircraft Limited
Falko is an established asset management company actively engaged in all aspects of commercial aircraft leasing, financing, and management with particular focus on the regional aircraft market. The team of specialists is focused on managing a portfolio of modern regional jet and turboprop aircraft on lease to leading airlines worldwide, in combination with a growing engine leasing and trading business. Falko is globally positioned to offer comprehensive asset management solutions to the regional aviation industry, with offices and representation in Europe, Asia, South America and Australia, from which extensive experience and expertise can be deployed across all regions of the world.

Since 2011, Falko, through its managed funds and affiliates, has acquired over 320 regional jet and turboprop aircraft worth in excess of US $3 billion. www.falko.com

About Brookfield Asset Management
Brookfield is a leading global alternative asset manager with approximately $700 billion of assets under management across real estate, infrastructure, renewable power and transition, private equity, and credit. Brookfield owns and operates long-life assets and businesses, many of which form the backbone of the global economy. Utilizing its global reach, access to large-scale capital and operational expertise, Brookfield offers a range of alternative investment products to investors around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield is listed on the New York and Toronto stock exchanges under the symbol BAM and BAM.A respectively.

Jazz Aviation Named One of the Top Employers in Nova Scotia and Atlantic Canada for the Eleventh Year in a Row

HALIFAX, NS, March 23, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced that its subsidiary Jazz Aviation LP (‘Jazz’) was recognized as a Top Employer in both Nova Scotia and Atlantic Canada for the eleventh consecutive year by Mediacorp Canada Inc.

“We are pleased to be recognized as an organization that provides exceptional employee support and development programs as well as forward-thinking workplace policies,” said Randolph deGooyer, President, Jazz. “Making Jazz a great place for our employees to develop and succeed is something we’re very proud of.”

These special designations recognize employers in Nova Scotia and Atlantic Canada that lead their industries in offering exceptional places to work. Employers are evaluated on their physical workplaces; work and social atmospheres; health; financial and family benefits; vacation and time off; employee communications; performance management; training and skills development; and community involvement.

Jazz was recognized for encouraging employees to keep skills sharp throughout their careers with formal mentoring, in-house and online training, as well as idea sharing initiatives which leverage employee experience to increase productivity and improve customer service and operational efficiency. The company helps employees prepare for the future with retirement planning assistance and contribution to a pension plan and seeks to develop an ownership culture through a share purchase program, available to all employees.

About Chorus Aviation Inc.

Chorus is a global provider of integrated regional aviation solutions. Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is comprised of Chorus Aviation Capital a leading, global lessor of regional aircraft, and Jazz Aviation and Voyageur Aviation – companies that have long histories of safe operations with excellent customer service. Chorus provides a full suite of regional aviation support services that encompasses every stage of an aircraft’s lifecycle, including aircraft acquisitions and leasing; aircraft refurbishment, engineering, modification, reproving and preparation; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com

About Jazz Aviation

Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. As the largest regional carrier in Canada and the sole operator of Air Canada Express flights, Jazz has a proven track record of industry leadership and exceptional customer service and has leveraged that strength to deliver value to all its stakeholders. www.flyjazz.ca

Jazz Aviation recognized as one of Canada’s Best Diversity Employers for the Eleventh Year

HALIFAX, NS, March 9, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that its subsidiary, Jazz Aviation LP (‘Jazz’), has been named one of Canada’s Best Diversity Employers for the eleventh consecutive year in an annual national employer survey by Mediacorp Canada Inc.

“We are honoured to have once again been recognized as one of Canada’s Best Diversity Employers. Diversity is core to our culture and something we’re very proud of. Jazz is a company that values individual uniqueness and empowers employees to be their authentic selves,” said Randolph deGooyer, President, Jazz.

Canada’s Best Diversity Employers recognizes the nation’s top employers who have exceptional workplace diversity and inclusiveness programs. The competition recognizes successful diversity initiatives in a variety of areas, including programs for employees from five groups: women; members of visible minorities; persons with disabilities; Indigenous peoples; and lesbian, gay, bisexual and transgender/transsexual (LGBT) people.

Mediacorp Canada Inc. recognized Jazz for the many initiatives the airline has developed and supported, including working with a number of community partners to reach out to Aboriginal candidates and mentoring students from First Nations Technical Institute. Jazz encourages young women to consider careers in aviation by participating in annual events such as Girls Take Flight. Also, Jazz embeds diversity and inclusion into its supplier policy.

About Chorus Aviation Inc.

Chorus is a global provider of integrated regional aviation solutions. Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is comprised of Chorus Aviation Capital a leading, global lessor of regional aircraft, and Jazz Aviation and Voyageur Aviation – companies that have long histories of safe operations with excellent customer service. Chorus provides a full suite of regional aviation support services that encompasses every stage of an aircraft’s lifecycle, including aircraft acquisitions and leasing; aircraft refurbishment, engineering, modification, repurposing and preparation; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com

About Jazz Aviation

Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. As the largest regional carrier in Canada and the sole operator of Air Canada Express flights, Jazz has a proven track record of industry leadership and exceptional customer service and has leveraged that strength to deliver value to all its stakeholders. www.flyjazz.ca

Chorus to Acquire Falko to Create a Premier Full-Service Provider in Regional Aviation

CA$1.1 billion1 transaction; immediately accretive

  • Expands and broadens Chorus’ business to include an established and growing asset management platform with an excellent track record
  • Enhances and diversifies future cash flows with a shift to an asset light model
  • Differentiated model benefits all stakeholders
  • Creates a leading regional aircraft lessor with best-in-class regional aviation management team
  • Establishes partnership with Brookfield as a strategic cornerstone investor in Chorus

HALIFAX, NS, Feb. 27, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that it has entered into a sale and purchase  agreement (the ‘SPA’) pursuant to which one or more wholly-owned subsidiaries of Chorus will acquire Falko Regional Aircraft Limited (‘Falko’), a leading regional aircraft lessor,  together with (i) affiliates of Falko, and (ii) the equity interests in certain entities and aircraft which are ultimately owned by funds managed  by  Fortress Investment Group LLC (‘Fortress’)  and managed by Falko (or one of its affiliates). The total consideration for the transaction is approximately US$855 million comprised of (a) US$445 million of cash consideration (inclusive of agreed adjustments)2, and (b) approximately US$410 million of existing indebtedness that will remain with the relevant target entities. The transaction includes Falko’s asset management platform and Fortress’ equity interests in 1263 owned and managed regional aircraft and will create new opportunities for growth and a differentiated business model to maximize returns on aircraft assets. The combined company will have a total of 353 owned, operated, and managed regional aircraft. Upon closing, Chorus anticipates having 32 airline customers in 23 countries.

Brookfield, through its Special Investments program (‘BSI’), and together with institutional partners, has agreed to make a strategic equity investment in Chorus in connection with the transaction. Conditional upon closing the acquisition, Brookfield will invest US$374 million in Chorus, including US$300 million of preferred equity4 and US$74 million of common equity. The preferred equity will be non-convertible and will initially pay a dividend of 8.75% annually in cash, or 9.5% in kind, at Chorus’ option, with step-ups after the sixth anniversary5. Chorus will issue 25,400,000 common shares6 at CA$3.70 per share, representing 12.5% of the pro forma issued and outstanding common shares and an approximate 8% premium to the 30-day VWAP of Chorus’ shares as of January 28, 20227, and 18,642,772 common share purchase warrants with an exercise price of CA$4.60per share, representing an approximate 35% premium to the 30-day VWAP of Chorus’ shares as of January 28, 20227.

Upon closing the transaction, Chorus will enter into an investor rights agreement with Brookfield providing for, among other things, registration rights, standstill and transfer restrictions and the right to nominate two directors to Chorus’ Board of Directors.  Upon closing the transaction, Brookfield will nominate David Levenson and Frank Yu to Chorus’ Board of Directors.

The acquisition transaction and the private placement to Brookfield are subject to applicable regulatory approvals and customary completion requirements, and are expected to close in the second quarter of 2022.

“The acquisition of Falko is transformative for Chorus, creating a world premier full-service provider in regional aviation,” stated Joe Randell, President and Chief Executive Officer, Chorus. “We are extremely pleased to have Brookfield, a well-respected company with global reach, as our strategic cornerstone investor, bringing extensive experience in asset management, fundraising and capital markets. The equity investment is an important endorsement of our strategy and simultaneously reduces leverage9. Brookfield’s significant financial strength and transaction expertise provides Chorus with increased stability and support to execute on our strategy to the benefit of all stakeholders.  The size and scale of the newly combined entity broadens and enhances market opportunities.  Growth through this established asset management platform meaningfully changes Chorus’ risk profile in terms of debt levels, residual value asset risk, and enhanced earnings stability and diversity. This transaction will be accretive10 to earnings and earnings per share in the first year.”

“We are very excited about this transaction as it combines two highly experienced platforms with complementary aircraft portfolios and diversified, high-quality customers worldwide,” said Jeremy Barnes, Chief Executive Officer, Falko. “Regional aircraft serve a critical role for airlines around the world and the growth trajectory is strong. In an increasingly competitive environment, together we’re better able to effectively address the needs of our customers and provide them with a larger scale of fleet solutions. Chorus’ technical skills and capabilities will help maximize asset returns for the benefit of shareholders and fund investors. This transaction caps over a decade of growth and success under the sponsorship of Fortress. We are grateful for the resources, expertise and partnership that Fortress provided as we built Falko into a truly best-in-class platform in a competitive industry, and we now look forward to an exciting next phase of success as part of Chorus.”

“We are pleased to partner with Chorus on the acquisition of Falko, which enables the combined company to execute on its asset-light strategy and benefit from the recovery in the aviation sector,” commented Angelo Rufino, Managing Partner and Head of Americas for BSI. “This investment is another example of how Brookfield partners with companies to originate flexible capital solutions to help them achieve their strategic goals,” said David Levenson, Managing Partner and Global Head of BSI.

A slide presentation regarding the transaction is available on the Chorus investor relations website at this link.

Advisors

Deutsche Bank Securities Inc. is the exclusive financial advisor to Chorus. Dentons UK and Middle East LLP is the legal advisor to Chorus in connection with the acquisition transaction, and Osler, Hoskin & Harcourt LLP is the legal advisor to Chorus in connection with the private placement.

About Chorus Aviation Inc.
Chorus is a global provider of integrated regional aviation solutions. Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is comprised of Chorus Aviation Capital a leading lessor of regional aircraft, and Jazz Aviation and Voyageur Aviation – companies that have long histories of safe operations with excellent customer service. Chorus provides a full suite of regional aviation support services that encompassesevery stage of an aircraft’s lifecycle, including aircraft acquisitions and leasing; aircraft refurbishment, engineering, modification, repurposing and preparation; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.

Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol ‘CHR’. Chorus 6.00% Senior Debentures, 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior Unsecured Debentures due June 30, 2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange under the trading symbols ‘CHR.DB’, ‘CHR.DB.A’, ‘CHR.DB.B’, and ‘CHR.DB.C’, respectively.  www.chorusaviation.com

About Falko Regional Aircraft Limited
Falko is an established asset management company actively engaged in all aspects of commercial aircraft leasing, financing, and management with particular focus on the regional aircraft market. The team of specialists is focused on managing a portfolio of modern regional jet and turboprop aircraft on lease to leading airlines worldwide, in combination with a growing engine leasing and trading business. Falko is globally positioned to offer comprehensive asset management solutions to the regional aviation industry, with offices and representation in Europe, Asia, South America and Australia, from which extensive experience and expertise can be deployed across all regions of the world.

Since 2011, Falko, through its managed funds and affiliates, has acquired over 320 regional jet and turboprop aircraft worth in excess of US $3 billion. www.falko.com

About Brookfield
Brookfield Asset Management (NYSE: BAM,TSX: BAM.A) is a leading global alternative asset manager with approximately $690 billion of assets under management across real estate, infrastructure, renewable power and transition, private equity, and credit. Brookfield owns and operates long-life assets and businesses, many of which form the backbone of the global economy. Utilizing its global reach, access to large-scale capital and operational expertise, Brookfield offers a range of alternative investment products to investors around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.