Cargojet completes C$100 million bought deal offering

On July 16, 2020, Cargojet Inc. ("Cargojet") completed its previously announced public offering of C$100 million aggregate principal amount of 5.25% listed senior unsecured hybrid debentures at a price of C$1,000 per debenture. 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 debentures were offered by a syndicate of underwriters co-led by RBC Capital Markets, CIBC Capital Markets and Scotiabank. Cargojet has granted the underwriters an over-allotment option, exercisable in whole or in part, at any time until 30 days following the closing of the offering, to purchase up to an additional C$15,000,000 aggregate principal amount of debentures, on the same terms and conditions as the offering.

Net proceeds of the offering will be used to pay down Cargojet's revolving credit facility and free up capacity to fund future anticipated capital expenditures, including the purchase of aircraft.

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.

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