Chorus Aviation calls C$60 million convertible debentures due 2014

By Susanna Moon

Chicago, Jan. 7 - Chorus Aviation Inc. said it called C$60 million, or 75%, of its C$80.21 million outstanding 9.5% convertible unsecured subordinated debentures due Dec. 31, 2014.

The company will redeem the convertibles on Feb. 10 on a pro rata basis at a purchase price of C$1,010.671238 per C$1,000.00 principal amount.

Chorus plans to use surplus cash to pay the redemption price plus accrued interest, according to a company press release.

After settlement, C$20.21 million of the convertibles will remain outstanding.

The notes are convertible until the last business day prior to the redemption date at a conversion price of C$5.25 per share, or a rate of 190.4762 shares per C$1,000 principal amount.

The company's shares closed at C$4.00 (Toronto: CHR) on Monday.

The remaining convertibles may be redeemed before maturity using future cash flow, the release noted.

Chorus Aviation, formerly Jazz Air Income Fund, is an Enfield, N.S.-based holding company. The company holds Jazz Aviation LP, which provides airline service throughout Canada.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.