Business
Chorus to Acquire Falko to Create a Premier Full-Service Provider in Regional Aviation
Chorus to Acquire Falko to Create a Premier Full-Service Provider in Regional Aviation ...
About this update from Chorus Aviation Inc.
[{"type":"text","content":"\n \n \n \n Chorus to Acquire Falko to Create a Premier Full-Service Provider in Regional Aviation\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n CA$1.1 billion\n \n 1\n \n transaction; immediately accretive\n \n \n \n \n \n \n Expands and broadens Chorus' business to include an established and growing asset management platform with an excellent track record\n \n \n \n \n \n \n Enhances and diversifies future cash flows with a shift to an asset light model\n \n \n \n \n \n \n Differentiated model benefits all stakeholders\n \n \n \n \n \n \n Creates a leading regional aircraft lessor with best-in-class regional aviation management team\n \n \n \n \n \n \n Establishes partnership with\n \n Brookfield\n \n as a strategic cornerstone investor in Chorus\n \n \n \n \n \n \n HALIFAX, NS\n \n ,\n \n Feb. 27, 2022\n \n /CNW/ - Chorus Aviation Inc. ('Chorus') (TSX: CHR) announced today that it has entered into a sale and purchase  agreement (the 'SPA') pursuant to which one or more wholly-owned subsidiaries of Chorus will acquire Falko Regional Aircraft Limited ('Falko'), a leading regional aircraft lessor,  together with (i) affiliates of Falko, and (ii) the equity interests in certain entities and aircraft which are ultimately owned by funds managed  by  Fortress Investment Group LLC ('Fortress')  and managed by Falko (or one of its affiliates). The total consideration for the transaction is approximately\n \n US$855 million\n \n comprised of (a)\n \n US$445 million\n \n of cash consideration (inclusive of agreed adjustments)\n \n 2\n \n , and (b) approximately\n \n US$410 million\n \n of existing indebtedness that will remain with the relevant target entities. The transaction includes Falko's asset management platform and Fortress' equity interests in 126\n \n 3\n \n owned and managed regional aircraft and will create new opportunities for growth and a differentiated business model to maximize returns on aircraft assets. The combined company will have a total of 353 own...