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Chorus Aviation Secures $300MM Financing for Regional Aircraft Leasing

February 01, 2019, 06:30 AM
Filed Under: Aircraft

Chorus Aviation Inc. announced its wholly owned subsidiary, Chorus Aviation Capital (Ireland) Limited, has secured a $300 million committed, revolving credit facility to be used to finance future aircraft acquisitions for its regional aircraft leasing business.

Borrowing under this facility will be used to support the expansion of Chorus Aviation Capital's regional aircraft portfolio beyond its current 34 aircraft valued at $750 million.

"This facility will provide a committed and flexible source of debt capital further enhancing our ability to grow our regional aircraft portfolio," said Steve Ridolfi, President, Chorus Aviation Capital Corp. "Today's announcement is an important step in our evolution, greatly increasing our capacity and enabling us to pursue a broader range of potential transactions. The strong bank support we received during this process is a testament to their confidence in our business plan and team."

The facility is led by Deutsche Bank as Lead Arranger and Structuring Agent and includes Barclays and the Royal Bank of Canada as syndicate members.

"Deutsche Bank is delighted to support Chorus with its inaugural portfolio acquisition facility for its growth aspirations in the regional aircraft sector," said Richard Moody, Managing Director, Global Co-Head, Transportation, Infrastructure & Energy, Deutsche Bank.

The facility contains eligibility and concentration criteria, as well as ongoing financial covenants customary for a facility of this nature. Loans under the facility are secured primarily by the aircraft assets and related leases financed by the facility and are guaranteed by Chorus Aviation Capital (Ireland) Limited.

Established in 2017, Chorus Aviation Capital has relationships with 12 regional airlines based in 12 countries. The company is focused on building a portfolio of new and mid-life regional aircraft, while leveraging the synergies inherent within its sister companies to provide a full suite of regional aviation services.

Chorus Aviation Inc. has its headquarters in Halifax, Nova Scotia.

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