Discovery Air Inc. ("Discovery Air") announced today that it has secured a new, committed operating facility with the Canadian Imperial Bank of Commerce ("CIBC"). The new facility has a limit of up to $25 million (depending on whether advances are made during or outside of Discovery Air's peak operating period and on the value of eligible receivables and inventory) and may be used for working capital and general corporate purposes. The new facility replaces Discovery Air's demand operating facility with Callidus Capital Corporation.
Brian Semkowski, Discovery Air's President and Chief Executive Officer, stated "This new, committed facility affords Discovery Air a greater certainty with respect to its available working capital while reducing interest expense. We want to thank Callidus Capital Corporation for their support and partnership over the last three years. We look forward to working with and creating a strong relationship with our new operating lender, CIBC."
The new facility with CIBC is secured by a first charge on the receivables and inventory of Discovery Air and certain of its subsidiaries, general security agreements and other customary security agreements.
In connection with the CIBC financing, Discovery Air has also amended certain of the terms of its outstanding $70 million principal amount of secured convertible debentures previously issued on September 23, 2011 to, among other things, confirm the debenture holders' priority in relation to cash proceeds from their priority collateral and clarify certain defined terms.
ABOUT DISCOVERY AIR AND ITS SUBSIDIARIES
Discovery Air is a Canadian specialty aviation company, operating over 150 aircraft with 850 team members. We deliver airborne training to the Canadian military; air ambulance services; airborne fire services; helicopter operations; fixed-wing air charter services; expediting and logistics support; and a range of maintenance, repair, overhaul, modification, engineering and certification services.