Dentons has advised Toronto Stock Exchange listed Chorus Aviation Inc. on the acquisition of Falko Regional Aircraft Limited (‘Falko’), a leading regional aircraft lessor, together with (i) affiliates of Falko, and (ii) the equity interests in certain entities and aircraft which are ultimately owned by funds managed by Fortress Investment Group LLC (‘Fortress’) and managed by Falko (or one of its affiliates), for approximately USD$855 million, comprised of approximately USD$445 million of cash consideration and approximately USD$410 million of existing indebtedness. Falko is an established asset management company actively engaged in all aspects of commercial aircraft leasing, financing and management with particular focus on the regional aircraft market.
The transaction includes Falko’s asset management platform and Fortress’ equity interests in 126 owned and managed regional aircraft. It solidifies Chorus’ position as a leading regional aviation platform with new opportunities for growth and a differentiated business model to maximize returns on aircraft assets. The combined company will have a total of 353 owned, operated, and managed regional aircraft. Upon closing, Chorus anticipates having 32 airline customers in 23 countries.
Dennis Lopes, SVP, Chief Legal Officer and Corporate Secretary – Chorus commented, “There was a great dynamic between the Chorus and Dentons teams which made a significant transaction much easier. We are grateful to the entire team at Dentons for their technical expertise, professionalism and dedication throughout this process.”
Neil Nicholson, head of UK Corporate at Dentons said, “It has been a real privilege to support longstanding Dentons’ client Chorus and its team on this important deal.”
The Dentons team advising Chorus was led by Neil Nicholson, together with counsel Michael Snook (corporate); Chorus relationship partner Nick Chandler and senior associates Grace Stobbart and Donal Keane (aircraft finance); associates Arjun Mehta and Vincent Leung, and trainee Katie Henson (corporate); senior associate Owen McLennan (funds); partner Adrian Magnus and associate Sanam Shah (competition); counsel Alastair MacLeod (tax); and partner Sarah Beeby, senior associate Victoria Albon and associate Kate Coppack (employment).
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