Chorus Aviation lines up new $100 million revolving credit facility

By Sarah Lizee

Olympia, Wash., April 6 – Chorus Aviation Inc. executed a letter of offer with Export Development Canada to provide an unsecured $100 million revolving credit facility, according to a press release.

The facility will be used for general corporate purposes and will be repayable in two years.

Closing remains subject to customary conditions, including the negotiation and execution of a definitive loan agreement and the consent of the lenders under Chorus' operating line of credit.

The company has an existing C$100 million revolving operating facility, of which C$75 million is committed and C$25 million is uncommitted. This facility can be used to fund working capital at the company and its Jazz and Voyageur subsidiaries. The company currently has a drawn balance, including letters of credit, of about C$40 million.

The company is also in the process of raising about $30 million to $50 million in financing to be secured by up to four unencumbered aircraft. These financings are currently anticipated to close in the company's second fiscal quarter, subject to negotiation and execution of definitive agreements and satisfaction of some conditions.

The Dartmouth, N.S.-based holding company controls regional and charter airline operator Jazz Aviation LP.

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