21 March 2022

Carey Olsen advises Falko in US$855 million sale to Chorus Aviation

Lawyers from Carey Olsen's corporate and investment funds practice in Jersey have acted for Falko Regional Aircraft Opportunities Fund LP and Falko Regional Aircraft Opportunities Fund II LP (the "Jersey Funds") in relation to a proposed sale by affiliates of Fortress Investment Group LLC (Fortress) of Fortress’ equity interests in those funds to Chorus Aviation Inc. (Chorus).

The sale, which is valued at approximately US$855 million (including debt and cash assumed), includes Falko's asset management platform and equity interests in 126 owned and managed regional aircraft.

The combined company will have a total of 353 owned, operated, and managed regional aircraft with 32 airline customers in 23 countries. It will be led by Jeremy Barnes as Chief Executive Officer.

The sale is subject to applicable regulatory approvals and customary completion requirements and is expected to close in the second quarter of 2022.

Carey Olsen advised the Jersey Funds and the selling entities on all the Jersey legal and regulatory aspects of the sale to Chorus, with partner Daniel O'Connor leading the firm's team with assistance from senior associate Mark Slater and associate Evija Vanaga. Deal teams from onshore law firms Kirkland & Ellis LLP and Milbank LLP acted for Falko and Fortress.

Daniel said: "Carey Olsen has enjoyed a longstanding relationship with Falko, having advised the company on both of their highly successful Jersey fund raisings. The sale to Chorus is an exciting next step for their business, and we wish the company the very best for the future."

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