Daily News: December 18, 2017

Discovery Air Extends CIBC Facility, Adds Clairvest Facilities


Discovery Air extended its operating credit facility with the Canadian Imperial Bank of Commerce for a term ending January 31, 2018

The company’s subsidiary Air Tindi entered into a subordinated credit agreement with Clairvest Group and its affiliates for a revolving subordinated credit facility in the aggregate principal amount of up to $8 million. All borrowings under the ATL revolving credit facility are secured on a subordinated basis, bear interest at a rate of 12% per annum, compounded, payable quarterly, and maturing on January 31, 2018, subject to acceleration in the event of certain refinancing transactions and extensions by Clairvest, acting reasonably. Proceeds from the ATL revolving credit facility were used to repay debt and for general corporate purposes.

Discovery Air’s subsidiary Discovery Air Defence entered into a second subordinated credit agreement with Clairvest, providing for a revolving subordinated credit facility in the aggregate principal amount of up to $8 million. All borrowings under the additional revolving credit facility are secured on a subordinated basis, bear interest at a rate of 12% per annum, compounded, payable quarterly and maturing on January 31, 2018, subject to acceleration in the event of certain refinancing transactions and extensions by Clairvest, acting reasonably. Proceeds from the

Discovery Air has also amended and restated both of the aircraft loan agreements with ECN Aviation to provide, inter alia, for the repayment of an aggregate principal amount not exceeding $5 million and the release of its subsidiary DA Defence from its obligations and the security provided by it in connection with each of the original aircraft loan agreements.