Chorus selling RAL(Incl Falko)

[GIVCE!]

Interesting developments.


Chorus Announces Agreement to Sell its
Regional Aircraft Leasing Segment
Chorus annonce une entente visant la vente de son secteur de la location d’appareils régionaux
Hello everyone:

I’m writing to share good news of a key development for Chorus Aviation, marking an important next phase for our company. We've made a strategic decision to sell our Regional Aviation Leasing (RAL) segment, which includes Falko, and the portfolio of leased aircraft owned and managed by Falko, to affiliates of investment funds managed by HPS Investment Partners, LLC. The transaction, valued at approximately $1.9 billion CAD in gross proceeds, is expected to close by the end of the year.

This is truly a milestone transaction for Chorus, for employees across all our businesses and for our shareholders. At the same time, this move will continue to allow Falko to build its position in the regional aircraft leasing market. The transaction simplifies our overall structure, giving us significantly improved financial flexibility and will allow Chorus to focus on growing in its core strengths in aviation services. There is no impact to our other business units, namely, Jazz, Voyageur and Cygnet.

As we reflect on our long history going back 80 years, we should all be very proud of our extensive experience and capabilities that we bring to the aviation industry. From Jazz’s vast experience and strengths in the regional flying business to Voyageur’s entrepreneurial pursuit of aerospace opportunities and the establishment of Cygnet’s industry-leading flight training capabilities, we have all the right elements for a very bright future.

I want to acknowledge that until this transaction closes, Falko remains an essential part of the Chorus group of companies, and it is business as usual for employees.

Please see a link to the announcement press release for more details on this transaction here: Chorus Aviation Announces Agreement to Sell its Regional Aircraft Leasing Segment – Chorus Aviation. This transaction is subject to shareholder approval as well as regulatory and other customary conditions to closing. We'll keep you updated on the process and the upcoming special meeting of shareholders.

I look forward to sharing a further update with employees in the near future.

Thank you for all that you do.

Colin

Bonjour à tous!

Il me fait plaisir d’annoncer un changement important qui marque une nouvelle étape dans l’histoire de Chorus Aviation. En effet, nous avons pris la décision stratégique de vendre à des membres du même groupe que des fonds d’investissement gérés par HPS Investment Partners, LLC notre secteur de la location d’appareils régionaux (« LAR »), qui comprend Falko, ainsi que le portefeuille d’appareils loués qui appartiennent à Falko et qui sont gérés par cette dernière. La clôture de cette opération, dont le produit brut est évalué à environ 1,9 milliard de dollars canadiens, devrait avoir lieu avant la fin de l’année.

Cette opération, qui constitue un point tournant pour Chorus, pour les employés de toutes nos entreprises et pour nos actionnaires, permettra également à Falko de continuer de renforcer sa position dans le marché de la location d’avions régionaux. Cette opération simplifie notre structure, nous permet de bénéficier d’une marge de manœuvre beaucoup plus importante sur le plan financier et permettra à Chorus de concentrer ses efforts sur son expansion dans son principal domaine de compétence, soit les services d’aviation. L’opération n’a aucune incidence sur nos autres unités fonctionnelles, soit Jazz, Voyageur et Cygnet.

Nous pouvons tous être très fiers des capacités et des compétences dont nous faisons profiter le secteur de l’aviation depuis la création de notre entreprise, il y a 80 ans. La vaste expérience de Jazz et ses compétences dans le secteur des vols régionaux, les projets de Voyageur dans le secteur aérospatial et la position de chef de file occupée par Cygnet dans le secteur de la formation de pilotes sont autant d’éléments qui nous permettent d’envisager notre avenir avec optimisme.

Je tiens à souligner que jusqu’à la clôture de l’opération, Falko demeure un élément essentiel du groupe de société de Chorus et que ses employés poursuivront leurs activités comme d’habitude.

Pour avoir accès au communiqué de presse qui annonce l’opération et fournit des précisions à son sujet, cliquez sur le lien ci-après : Chorus Aviation annonce une entente visant la vente de son secteur de la location d’appareils régionaux – Chorus Aviation. Cette opération est assujettie à l’approbation des actionnaires, aux approbations réglementaires et à d’autres conditions usuelles de clôture. Nous vous donnerons des nouvelles au sujet de ce processus et de l’assemblée extraordinaire des actionnaires qui sera convoquée prochainement.

J’espère avoir l’occasion de vous transmettre bientôt d’autres nouvelles à ce sujet.

Merci pour votre appui et votre engagement.

[cdnavater]

So, 2/3 of shareholders need to approve this, what’s in it for me?
As a shareholder all Chorus has left is Jazz, Voyageur and cygnet, seems like the stock will go up short term but after that a renegotiated CPA will have Jazz shrink and a simultaneous shrinking of the remaining stock.
What’s the plan going forward Chorus, is this a wind down with a sale of Jazz and remaining entities to whoever wants them?
I guess I’ll have to wait for the package of the sales presentation, see what they are planning with this nearly a billion in cash.

[rudder]

So, 2/3 of shareholders need to approve this, what’s in it for me?
As a shareholder all Chorus has left is Jazz, Voyageur and cygnet, seems like the stock will go up short term but after that a renegotiated CPA will have Jazz shrink and a simultaneous shrinking of the remaining stock.
What’s the plan going forward Chorus, is this a wind down with a sale of Jazz and remaining entities to whoever wants them?
I guess I’ll have to wait for the package of the sales presentation, see what they are planning with this nearly a billion in cash.

Net Proceeds will be used to discharge debt and the remainder will find its way to the shareholders. That is the inducement to vote ‘yes’.

CHR is evolving to be a slim shell. Few assets. Fairly steady revenue stream with marginal positive cash flow.

Stock price barely moved. What you see is what it is. The market is generally accurate at assessing value.

[cdnavater]

So, 2/3 of shareholders need to approve this, what’s in it for me?
As a shareholder all Chorus has left is Jazz, Voyageur and cygnet, seems like the stock will go up short term but after that a renegotiated CPA will have Jazz shrink and a simultaneous shrinking of the remaining stock.
What’s the plan going forward Chorus, is this a wind down with a sale of Jazz and remaining entities to whoever wants them?
I guess I’ll have to wait for the package of the sales presentation, see what they are planning with this nearly a billion in cash.

Net Proceeds will be used to discharge debt and the remainder will find its way to the shareholders. That is the inducement to vote ‘yes’.

CHR is evolving to be a slim shell. Few assets. Fairly steady revenue stream with marginal positive cash flow.

Stock price barely moved. What you see is what it is. The market is generally accurate at assessing value.

Any idea what our debt load will be after the deal?
The buyer is assuming 1.1 billion in debt as part of this, is that not the majority of the debt?
Edit;
Looks like remaining debt is Jazz aircraft which is covered by the CPA and 300 million in debentures, so going back to when Jazz was most of the revenue, I support this transaction after reading the initial report.

[GIVCE!]

https://ceo.ca/@newswire/chorus-aviatio ... s-regional

Agreed, this is a strategy play by the corp. do they not feel the leasing side will grow in the next decade? What do they know we do not? The conference call was a stuff off explanation of reducing debt and the promising to grow the remaining business. Asset light. the remaining entities will be sold off also, imo. Not much growth potential from a shrinking CPA . But I’m not a business guy…

Debt load will be reduced to near zero as the CPA revenues will cover the costs, according to Colin.

Exciting times, change is afoot. Again.

[cdnavater]

The answer to why the stock has been going up for the last month has been answered

[rudder]

https://ceo.ca/@newswire/chorus-aviatio ... s-regional

Agreed, this is a strategy play by the corp. do they not feel the leasing side will grow in the next decade? What do they know we do not? The conference call was a stuff off explanation of reducing debt and the promising to grow the remaining business. Asset light. the remaining entities will be sold off also, imo. Not much growth potential from a shrinking CPA . But I’m not a business guy…

Debt load will be reduced to near zero as the CPA revenues will cover the costs, according to Colin.

Exciting times, change is afoot. Again.

Sell Jazz to AC and Voyageur (including the MRO) to EIC.

No more CHR. Proceeds to the CHR shareholders. No different than the ACE dissolution strategy.

Only problem is whether there is any value in the remaining business units.

[cdnavater]

https://ceo.ca/@newswire/chorus-aviatio ... s-regional

Agreed, this is a strategy play by the corp. do they not feel the leasing side will grow in the next decade? What do they know we do not? The conference call was a stuff off explanation of reducing debt and the promising to grow the remaining business. Asset light. the remaining entities will be sold off also, imo. Not much growth potential from a shrinking CPA . But I’m not a business guy…

Debt load will be reduced to near zero as the CPA revenues will cover the costs, according to Colin.

Exciting times, change is afoot. Again.

Sell Jazz to AC and Voyageur (including the MRO) to EIC.

No more CHR. Proceeds to the CHR shareholders. No different than the ACE dissolution strategy.

Only problem is whether there is any value in the remaining business units.

AC, I presume is the one spending millions in refurbishing our fleet, a purchase of Jazz and the aircraft ownership would certainly reduce the overall cost of the regional expenses, I’m sure EIC has been sniffing around Voyageur, I can see this happening. Cyganet is just the pilot school and has little value, maybe a retirement job for Colin Copp

[DanWEC]

The answer to why the stock has been going up for the last month has been answered

Exactly. I knew something was going on, you don't get a several week run with that sort of momentum for nothing.
It won't change now, it's at its speculative value for distribution once the asset sale completes, if anything it'll drop a bit, but it would have been a great way to get 17% in the last month. Shoot.

[Jean-Pierre]

The answer to why the stock has been going up for the last month has been answered

In most country it's illegal but here no one cares.

[AnnBallard]

Same here and I don't know why.

[JustaCanadian]

People don't seem to realize or even care when corruption is happening right in front of them.

Insider trading, tax dollars handed over to corporations etc. Didn't Goodyear just get some millions to "expand" its Tire factory in Ontario. Lol. Non stop funnle of our money to these guys so we can buy even more garbage off them down the road.

Goodyear needed the gov handout because the liberals said don't road trip this year to stop canada from burning. All those losses the tire company would suffer was just so much they couldn't make it without a little corruption.