Chorus Aviation Inc. (TSX: CHR) has closed a $50 million first tranche of convertible debt units to subsidiaries of Fairfax Financial Holdings Limited (TSX: ) previously announced on December 19, 2016.
Pursuant to the 1st closing, Chorus issued $50,000,000 principal amount of 6.00% senior debentures due December 31, 2024, together with 6,060,606 warrants each of which may be exercised by the holder thereof to acquire one share of Chorus at an exercise price of $8.25 per share, to Fairfax for gross proceeds of $50,000,000.
Chorus expects to issue to Fairfax the remaining $150,000,000 principal amount of debentures together with 18,181,818 warrants for gross proceeds of $150,000,000 on or before March 31, 2017.
RBC Capital Markets and UBS Securities Canada Inc. acted as lead agents for Chorus. Osler, Hoskin & Harcourt LLP acted as legal counsel to Chorus. Torys LLP acted as legal counsel to Fairfax.
photo credit: Chorus Aviation