07:44 AM EST, 12/09/2024 (MT Newswires) -- Chorus Aviation Inc. ( CHRRF ) -- which closed lower, but having also touched a fresh 52 week high last Friday -- on Monday announced its plan to repay its corporate financings to help optimize its capital structure, following the closing of the sale of Chorus' Regional Aircraft Leasing segment on December 6, 2024.

As previously announced, Chorus intends to use net proceeds from the transaction to repay at maturity, redeem or repurchase its corporate financings, including the outstanding 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior Unsecured Debentures due June 30, 2026, 5.75% Senior Unsecured Debentures due June 30, 2027 and the Series 1 Preferred Shares in the capital of the company.

"Following the recent closing of the RAL segment sale, we are now executing on our previously announced plan to deleverage the company's balance sheet," said Colin Copp , President and Chief Executive Officer. "This is an important milestone, as we reposition Chorus for a stronger future."

Today, Chorus will issue a notice of change of control under the indentures governing the Series B Debentures (C$72.5 million aggregate principal amount) and Series C Debentures (C$85.0 million aggregate principal amount) and commence offers to purchase all of the outstanding aggregate principal amount of Debentures at a price equal to: in the case of the Series B Debentures, 100% of the principal amount thereof repurchased, and in the case of the Series C Debentures, 101% of the principal amount thereof repurchased, plus, in each case, accrued and unpaid interest, if any on such Debentures up to but excluding February 3, 2025, the date of purchase.

Each Change of Control Offer is open for acceptance by the holders of the Debentures until 5:00 p.m. on January 27, 2025.

If 90% or more of the aggregate principal amount of the outstanding Series B Debentures or the Series C Debentures have been tendered for purchase on or prior to the Expiry Time, Chorus will have the right to redeem all of the remaining outstanding Series B Debentures or the Series C Debentures, as applicable, in accordance with the terms of the indentures governing the Debentures. If Chorus elects to exercise such right in respect of either series of Debentures, Chorus intends to apply to the TSX to delist such series.