Cargojet Inc. has announced the successful closing of the issue and sale of an additional $15 million aggregate principal amount of 5.25% listed senior unsecured hybrid debentures (the “Debentures”) pursuant to the exercise in full of the over-allotment option granted to the syndicate of underwriters, co-led by RBC Capital Markets, CIBC Capital Markets and Scotiabank, in connection with the Corporation’s recently completed bought deal offering of $100 million aggregate principal amount of Debentures (the “Offering”).
Together with the Debentures issued on July 16, 2020, Cargojet will have issued a total of C$115,000,000 aggregate principal amount of the Debentures.
The Debentures bear interest at a rate of 5.25% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, commencing December 31, 2020, and will mature on June 30, 2026.
The Offering was made pursuant to a final short form prospectus dated July 9, 2020, and the Debentures are traded on the Toronto Stock Exchange under the symbol “CJT.DB.F”.
The Corporation intends to use the net proceeds from the closing of the over-allotment option to pay down the Corporation’s revolving credit facility and to free up capacity to fund future anticipated capital expenditures, including the purchase of aircraft.
The securities issued pursuant to the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Cargojet is Canada’s leading provider of time-sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft.