07:52 AM EDT, 07/30/2024 (MT Newswires) -- Chorus Aviation ( CHRRF ) Tuesday agreed to sell all assets in its RAL segment, including Falko Regional Aircraft Limited and Chorus' equity interests in the aircraft investment funds managed by Falko and its affiliates to affiliates of investment funds managed by HPS Investment Partners.

A statement noted the aggregate consideration for the transaction is approximately $1.9 billion, of which $814 million is in the form of cash (net of estimated transaction expenses) and $1.1 billion is in the form of aircraft debt to be assumed or prepaid by the buyers at closing and the value of the non-controlling interest.

"This is a compelling transaction for shareholders with net proceeds representing a significant premium to the implied market value of the segment and at a price consistent with the trading multiples of our aircraft leasing peers," President and Chief Executive Colin Copp said in a statement.

"This transaction will allow us to significantly reduce our debt and corporate financings, leaving Chorus with strong and predictable free cash flows from our long-term contracts," added Copp.

Brookfield Asset Management ( BAM ) through its Special Investments program, and Air Canada ( ACDVF ) , Chorus' two largest common shareholders, endorsed the transaction.