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TORONTO, ONTARIO--(Marketwired - Dec. 20, 2016) - Discovery Air Inc. (TSX:DA.A) ("Discovery Air" or the "Corporation") announced today that its subsidiary, Discovery Air Defence Services Inc. ("DA Defence"), has entered into a credit agreement (the "Credit Agreement") with certain funds or co-investors (such lenders, collectively "Clairvest") of Clairvest Group Inc., the majority shareholder of the Corporation, providing for a revolving credit facility in the aggregate principal amount of up to $25,000,000 (the "Revolving Credit Facility"). All borrowings under the Revolving Credit Facility are secured, bear interest at a rate of 12% per annum payable on February 15, 2017 and May 15, 2017 and mature on June 30, 2017 subject to acceleration in the event of certain refinancing transactions. DA Defence may repay and re-borrow the principal under the Revolving Credit Facility on customary conditions. Proceeds from the Revolving Credit Facility will be used to (i) refinance an existing equipment loan in favour of the Corporation pursuant to a credit agreement dated as of March 30, 2016 among the Corporation and Clairvest (including by way of repayment of certain existing intercompany indebtedness between DA Defence and the Corporation) and (ii) to re-leverage the German Aircraft (as defined in the Credit Agreement) in support of certain growth initiatives and for business development activities at certain affiliates. |
