HALIFAX,
March 27, 2014 /CNW/ - Chorus
Aviation Inc. ("Chorus") (TSX: CHR.B CHR.A CHR.DB)
today announced that the Toronto Stock Exchange (the "TSX")
has accepted its notice to make a normal course issuer bid
("NCIB") to purchase for cancellation up to a maximum of
12,168,157 of its Class A Variable Voting shares and/or Class B
Voting shares (collectively, the "Shares"), representing 10%
of the public float of the Shares.
The directors and management of Chorus believe
that the market price of the Shares during the period of the bid
may be such that the purchase of Shares by Chorus for cancellation
would be in the best interests of Chorus and an appropriate use of
corporate funds in light of potential benefits to remaining
shareholders.
As of March 24,
2014, Chorus had 122,542,026 Shares issued and outstanding,
of which 121,681,572 Shares constitute the total public float of
the Shares. Purchases made pursuant to the bid will be made in the
open market through the facilities of the TSX and/or alternative
trading systems in accordance with the requirements of the TSX.
Chorus is authorized to commence the bid on or about March 31, 2014 and have it remain in effect until
March 30, 2015, or such earlier date
as Chorus may complete its purchases pursuant to a Notice of
Intention filed with the TSX. There can be no assurances as to how
many Shares, if any, will be acquired by Chorus pursuant to this
NCIB. Shares purchased by Chorus pursuant to the bid will be
cancelled. On any trading day, Chorus will not purchase more than
83,346 Shares, except where such purchases are made in accordance
with the block purchase exemptions under the TSX rules.
In connection with the NCIB, Chorus has
established an automatic securities purchase plan (the
"Plan") for the purchase of Shares. The Plan was established
to provide standard instructions regarding how Shares are to be
purchased under the NCIB. Accordingly, Chorus' designated broker
may purchase Shares under the Plan on any trading day during the
NCIB during pre-determined trading blackout periods. The Plan will
commence immediately and terminate when the NCIB terminates, unless
terminated earlier in accordance with its terms. Outside of these
pre-determined blackout periods, Shares will be repurchased in
accordance with management's discretion, subject to applicable law.
Chorus may vary, suspend or terminate the Plan only if it does not
have material non-public information and the decision to vary,
suspend or terminate the Plan is not taken during a pre-determined
trading blackout period. The Plan constitutes an "automatic plan"
for purposes of applicable Canadian securities legislation and has
been reviewed by the TSX.
Under its previously approved NCIB program that
will expire on March 17, 2014, as of
February 28, 2014 Chorus had
repurchased 1,871,800 Shares at an aggregate cost of approximately
$4 million, representing a weighted
average repurchase price of $2.13 per
common share. All of the repurchased Shares were subsequently
cancelled.
Forward Looking Statements
Certain statements in this news release may
contain statements which are forward-looking. These forward-looking
statements are identified by the use of terms and phrases such as
"anticipate", "believe", "could", "estimate", "expect", "intend",
"may", "plan", "predict", "project", "will", "would", and similar
terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect
to strategies, expectations, planned operations or future
actions.
Forward-looking statements relate to analyses
and other information that are based on forecasts of future
results, estimates of amounts not yet determinable and other
uncertain events. Forward-looking statements, by their nature, are
based on assumptions, including those described below, and are
subject to important risks and uncertainties. Any forecasts or
forward-looking predictions or statements cannot be relied upon due
to, amongst other things, changing external events and general
uncertainties of the business. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements to differ materially
from those expressed in the forward-looking statements. Results
indicated in forward-looking statements may differ materially from
actual results for a number of reasons, including without
limitation, risks relating to Chorus' relationship with Air Canada,
risks relating to the airline industry, energy prices, general
industry, market, credit, and economic conditions, competition,
insurance issues and costs, supply issues, war, terrorist attacks,
epidemic diseases, environmental factors, acts of God, changes in
demand due to the seasonal nature of the business, the ability to
reduce operating costs and employee counts, secure financing,
employee relations, labour negotiations or disputes, restructuring,
pension issues, currency exchange and interest rates, leverage and
restructure covenants in future indebtedness, dilution of Chorus
shareholders, uncertainty of dividend payments, managing growth,
changes in laws, adverse regulatory developments or proceedings,
pending and future litigation and actions by third parties. The
forward-looking statements contained in this discussion represent
Chorus' expectations as of March 27,
2014, and are subject to change after such date. However,
Chorus disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new
information, future events or otherwise, except as required under
applicable securities regulations.
About Chorus
Headquartered in Halifax, Nova
Scotia, Chorus was incorporated on September 27, 2010 and is a dividend-paying
holding company which owns Jazz Aviation LP and a number of other
companies involved in aviation related businesses.
Chorus is traded on the Toronto Stock Exchange
under the trading symbols of CHR.A, CHR.B and CHR.DB.
For more information, visit
www.chorusaviation.ca
About Jazz
Jazz Aviation LP has a strong history in Canadian aviation with its
roots going back to the 1930s. Jazz is wholly owned by Chorus
Aviation Inc. and continues to generate some of the strongest
operational and financial results in the North American aviation
industry. As the largest regional in Canada, Jazz has a proven track record of
industry leadership and exceptional customer airline service, and
has leveraged that strength to deliver value to all its
stakeholders. The Company operates more flights and flies to more
Canadian destinations than any other airline and has a workforce of
approximately 4,760 professionals highly experienced in the
challenging and complex nature of regional operations. Jazz
employees are an integral part of communities across our nation
with 20% of our workforce based in Atlantic Canada, 46% based in Central Canada, 33% based in Western Canada, and 1% in Northern Canada.
Under a capacity purchase agreement with Air
Canada, using the Air Canada Express brand, Jazz provides service
to and from lower-density markets as well as higher-density markets
at off-peak times throughout Canada and to and from certain destinations in
the United States. This month,
Jazz is operating scheduled passenger service on behalf of Air
Canada with approximately 750 departures per weekday to 54
destinations in Canada and to 26
destinations in the United States.
With a fleet of 122 Canadian-made Bombardier aircraft, Jazz flies
more daily flights to more Canadian destinations than any other
airline.
Under the Jazz brand, the airline offers
charters throughout North America
with a dedicated fleet of three Bombardier aircraft for corporate
clients, governments, special interest groups and individuals
seeking more convenience. Jazz also has the ability to offer
airline operators services such as ground handling, dispatching,
flight load planning, training and consulting.
For more information, visit www.flyjazz.ca.
SOURCE Chorus Aviation Inc.