Jazz Air Income Fund completes $75,000,000 public offering of ConvertibleUnsecured Subordinated Debentures - Nov 12, 2009

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Jazz Air Income Fund completes $75,000,000 public offering of ConvertibleUnsecured Subordinated Debentures

Nov 12, 2009

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

 

HALIFAX, Nov. 12 /CNW/ - Jazz Air Income Fund ("Jazz" or the "Fund" TSX: JAZ.UN) announced today that it has completed its previously announced public offering of $75,000,000 principal amount of 9.50% Convertible Unsecured Subordinated Debentures (the "Debentures"). The Debentures were sold to a syndicate of underwriters led by TD Securities, BMO Capital Markets, CIBC and RBC Capital Markets, and including Beacon Securities Limited, Genuity Capital Markets G.P., Salman Partners Inc. and Versant Partners Inc. on a bought deal basis. In addition, Jazz has granted the underwriters an over-allotment option, exercisable for a period of 30 days following closing, to purchase an additional $11,250,000 of Debentures, which, if exercised, would increase the gross proceeds of the offering to $86,250,000.

Net proceeds from the offering will be used for working capital requirements and for general purposes of the Fund. This may include, among other uses, funding deposit amounts in respect of our re-fleeting program, repaying outstanding indebtedness and funding possible future acquisitions.

The Debentures have not been and will not be registered under the United States Securities Act of 1933 and accordingly may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act. This news release is not an offer of securities for sale in the United States.

 

The Fund is an unincorporated, open-ended trust established under the laws of the Province of Ontario, created to indirectly acquire and hold an interest in the outstanding limited partnership units of Jazz Air LP.

Jazz is the second largest airline in Canada based on fleet size and the number of routes operated. Jazz operates more flights and flies to more Canadian destinations than any other Canadian carrier. Jazz forms an integral part of Air Canada's domestic and transborder market presence and strategy.

Jazz is not a typical airline. The airline has a commercial agreement (the "CPA") with Air Canada that is the core of its business. Under the CPA, Air Canada currently purchases substantially all of Jazz's fleet capacity based on predetermined rates. The CPA provides commercial flexibility, low trip costs and connecting network traffic to Air Canada.

For further information: Manon Stuart, (902) 873-5054, Halifax, Nova Scotia, manon.stuart@flyjazz.ca; www.flyjazz.ca


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