Cargojet closes C$125 million bought deal offering of 4.65% convertible unsecured subordinated debentures

On September 15, 2016, Cargojet Inc. (Cargojet) closed its previously announced offering of C$115 million aggregate principal amount of 4.65% convertible unsecured subordinated debentures due December 31, 2021 at a price of C$1,000 per debenture. In connection with the offering, Cargojet also granted the underwriters, led by RBC Capital Markets and National Bank Financial, an option to purchase an additional C$10 million aggregate principal amount of debentures on the same terms and conditions as the offering. The underwriters elected to fully exercise the over-allotment option prior to closing, resulting in total gross proceeds to Cargojet from the offering of C$125 million.

Cargojet intends to use approximately C$119 million of the net proceeds of the offering to refinance approximately C$103 million of US dollar denominated aircraft finance loans, with the balance used for general corporate purposes.

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.

Further information can be found on Canada Newswire's website.