Brief: Chorus To Acquire Falko For About US$855 Mln To Create Premier Full-Service Provider In Regional Aviation

Chorus Aviation

28/02/2022 02:39

Feb 27 (Reuters) - Chorus Aviation Inc  CHR.TO :
    * CHORUS TO ACQUIRE FALKO TO CREATE A PREMIER FULL-SERVICE
PROVIDER IN REGIONAL AVIATION
    * TOTAL CONSIDERATION FOR TRANSACTION IS APPROXIMATELY
US$855
MILLION
    * CHORUS WILL ISSUE 25,400,000 COMMON SHARES AT CA$3.70 PER
SHARE
    * CHORUS AVIATION - DEAL COMPRISED OF US$445 MILLION OF CASH
CONSIDERATION (INCLUSIVE OF AGREED ADJUSTMENTS) AND ABOUT US$410
MILLION OF EXISTING INDEBTEDNESS
    * THIS TRANSACTION WILL BE ACCRETIVE10 TO EARNINGS AND
EARNINGS
PER SHARE IN FIRST YEAR
    * UPON CLOSING TRANSACTION, CHORUS WILL ENTER INTO AN
INVESTOR
RIGHTS AGREEMENT WITH BROOKFIELD
    * UPON CLOSING TRANSACTION, BROOKFIELD WILL NOMINATE DAVID
LEVENSON AND FRANK YU TO CHORUS' BOARD OF DIRECTORS
    * CHORUS AVIATION - CONDITIONAL UPON CLOSING DEAL,
BROOKFIELD TO
INVEST US$374 MILLION IN CO, INCLUDING US$300 MILLION OF
PREFERRED EQUITY & US$74 MILLION OF EQUITY
    * CHORUS AVIATION - ENTERED INTO AGREEMENT PURSUANT TO WHICH
ONE
OR MORE WHOLLY-OWNED UNITS OF CHORUS WILL ACQUIRE FALKO REGIONAL
AIRCRAFT LIMITED

Source text for Eikon:  ID:nCNWvCXcYa 
Further company coverage:  CHR.TO 

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