Posted on: 22 January 2019 by Kimberley Young
Chorus Aviation’s wholly-owned subsidiary Chorus Aviation Capital (Ireland) Limited has secured a US$300 million committed, revolving credit facility to be used to finance future aircraft acquisitions for its regional aircraft leasing business.
The company explained that borrowing under this facility will be used to support the expansion of its regional aircraft portfolio beyond its current 34 aircraft valued at US$750 million.
“This facility will provide a committed and flexible source of debt capital further enhancing our ability to grow our regional aircraft portfolio,” commented Steve Ridolfi, president, Chorus Aviation Capital Corp. “Today’s announcement is an important step in our evolution, greatly increasing our capacity and enabling us to pursue a broader range of potential transactions. The strong bank support we received during this process is a testament to their confidence in our business plan and team.”
Chorus Aviation has been growing its regional aircraft leasing business which is focusing on building a portfolio of new and mid-life regional aircraft. The company announced plans to invest in aircraft acquisitions last year and expressed confidence in the potential for growing Chorus Aviation Capital.
The facility is led by Deutsche Bank as Lead Arranger and Structuring Agent and includes Barclays and the Royal Bank of Canada as syndicate members.
The facility contains eligibility and concentration criteria and ongoing financial covenants. Loans under the facility are secured primarily by the aircraft assets and related leases financed by the facility and are guaranteed by Chorus Aviation Capital (Ireland) Limited.