Porter Aviation Holdings Inc. Sells Billy Bishop Toronto City Airport Passenger Terminal to Nieuport Aviation Infrastructure Partners

TORONTO, ON–(Marketwired – January 27, 2015) – Porter Aviation Holdings Inc. (PAHI) has completed the sale of its passenger terminal at Billy Bishop Toronto City Airport (BBTCA) to Nieuport Aviation Infrastructure Partners GP (Nieuport Aviation), a consortium of Canadian and international infrastructure equity investors.

Nieuport Aviation comprises InstarAGF Asset Management Inc. (InstarAGF), Kilmer Van Nostrand Co. Limited, Partners Group, and institutional investors advised by J.P. Morgan Asset Management. Nieuport Aviation encompasses long-term infrastructure owners and operators with a deep local presence, significant international expertise in managing aviation infrastructure, and a commitment to world-class client service.

PAHI operated terminal facilities at BBTCA through its subsidiary, City Centre Terminal Corp. (CCTC). Porter Airlines Inc., another PAHI subsidiary, will maintain and enhance its service at the airport in coming years.

“Nieuport Aviation is a seasoned airport operator that will deliver exceptional service at the terminal and help build on the existing overall superior travel experience for passengers,” said Robert Deluce, President and CEO, Porter Aviation Holdings Inc. “We will work closely with its management team over the next few months to ensure a seamless transition. This transaction further strengthens our core business with Porter Airlines and positions the company for continuing growth and success.”

“The terminal is a premier essential transportation infrastructure asset with an established operating history, robust contractual framework and positive long-term outlook,” said Gregory Smith, President and CEO, InstarAGF. “Studies show that travellers overwhelmingly choose BBTCA because of its convenience, efficiency and high service standards. With a focus on sustaining and elevating the passenger experience at the terminal, we look forward to building strong relationships with all stakeholders at BBTCA and to supporting its further development as a vital gateway for commerce and economic growth in the greater Toronto region.”

“Few, if any, international business capitals boast an ‘in city’ airport that matches the convenience of Billy Bishop Toronto City Airport,” said Matt LeBlanc, Chief Investment Officer, OECD Infrastructure Equity Investments for J.P. Morgan Asset Management – Global Real Assets. “A stone’s throw from downtown, Billy Bishop’s location attracts business travellers, visitors and local passengers that ensure its long-term success. We look forward to carrying on the legacy of maintaining and enhancing this essential Toronto asset.”

“Kilmer has been building Ontario infrastructure for three generations, and is pleased to be adding its strong local operational support and development experience to this very qualified consortium. We believe in the customer-centered approach that is part of the travelling experience at BBTCA,” said Ken Tanenbaum, Vice Chair, Kilmer Group.

“Billy Bishop Toronto City Airport is a highly attractive infrastructure asset in a stable market. Its close proximity to the city’s business district means it is ideally positioned to continue attracting its share of the business travel market,” added Todd Bright, Managing Director and Head of Americas Private Infrastructure, Partners Group.

BBTCA is the ninth busiest airport in Canada, serving 2.4 million passengers in 2014. The terminal is a state-of-the-art facility newly constructed by CCTC in 2010. The airport is a major economic engine for the Greater Toronto Area, generating approximately $1.9 billion in total annual economic impact and supporting approximately 5,700 direct and indirect jobs. It is accessible to about 6.6 million residents within a one-hour drive. In 2013, Billy Bishop Airport was recognized by Skytrax as one of the world’s best small airports.

The sale price of the terminal is undisclosed.

Nieuport Aviation was advised on the transaction by BMO Capital Markets and McCarthy Tétrault. Debt financing has been underwritten by The Bank of Nova Scotia, Caisse centrale Desjardins and National Bank of Canada.

PAHI’s financial advisers were Barclays Capital Canada and RBC Capital Markets, with legal advice provided by Norton Rose Fulbright.

About InstarAGF Asset Management
Launched in 2014, InstarAGF is an independent alternative asset management firm. InstarAGF’s investment objective is to deliver superior-risk adjusted returns to global institutional and qualified investors through its emphasis on mid-market opportunities in the infrastructure sector and other alternative asset categories. InstarAGF, which makes direct investments and co-investments with like-minded investors and strategic partners, is a joint venture between Instar Group Inc. and AGF Management Limited, one of Canada’s largest independent investment management firms with approximately $34.5 billion in assets under management. For more information: www.instaragf.com

About J.P. Morgan Asset Management
J.P. Morgan Asset Management – Global Real Assets has more than $79 billion in assets under management and approximately 400 professionals in the U.S., Europe and Asia, as of September 30, 2014. With a 40-plus-year history of successful investing, J.P. Morgan Asset Management – Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure, maritime/transport and energy strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions. The Global Real Assets team is part of J.P. Morgan Asset Management’s Alternatives Investments business, which collectively manages over $120 billion in client assets across real assets, hedge funds, credit and private equity. For more information: jpmorgan.com/institutional/global_real_assets

About Kilmer Van Nostrand Co. Limited
Kilmer Van Nostrand Co. Limited (Kilmer) is the private investment holding company of Toronto businessman Larry Tanenbaum, O.C. Kilmer has been building infrastructure in Ontario and worldwide for three generations. Current projects include the development of the Pan Am Athletes’ Village in partnership with DREAM, and the design, build and operation of the ONroute Ontario Highway Service Centres with partners HMS Host and Canadian Tire. Kilmer invests in areas where its unique mix of skills and experiences, derived from over forty years of operating and investment activities, enable it to add value to new investment opportunities. For more information: http://www.kilmergroup.com

About Partners Group
Partners Group is a global private markets investment management firm with over USD 40 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 700 people, is listed on the SIX Swiss Exchange (symbol: PGHN) and has a major ownership by its partners and employees. For more information: www.partnersgroup.com

About Porter Aviation Holdings Inc.
PAHI is a holding company for subsidiaries that include Porter Airlines Inc. and City Centre Terminal Corp.

Porter Airlines currently offers flights to Toronto, Ottawa, Montreal, Quebec City, Moncton, Halifax, St. John’s, Thunder Bay, Sault Ste. Marie, Sudbury, Timmins, Windsor, New York (Newark), Chicago (Midway), Boston, Washington (Dulles) and has seasonal flights to Mt. Tremblant, Que., Myrtle Beach, S.C., Charleston, S.C., and Burlington, Vt.