Mississauga, ON, November 14, 2023 – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX:CJT) today announced its intention to redeem in full on December 29, 2023 (the “Redemption Date”) all of its then-outstanding 5.75% senior unsecured hybrid debentures due April 30, 2024 (the “Debentures”) in accordance with the provisions of the indenture (the “Indenture”) dated November 6, 2018 between the Corporation and Computershare Trust Company of Canada (the “Trustee”).
The redemption price (the “Redemption Price”) for the Debentures will be 100% of the aggregate outstanding principal amount, together with accrued and unpaid interest up to, but excluding, the Redemption Date. In accordance with the Indenture, Cargojet intends to satisfy its obligation to pay the Redemption Price in cash. Interest upon the entire aggregate principal amount of the Debentures will cease to be payable from and after the Redemption Date. The Corporation intends to draw approximately $90 million under its non-revolving delayed-draw term loan facility and use such funds to redeem the Debentures. In the 15 business days preceding the scheduled Redemption Date of December 27, 2023, the Trustee is not required to transfer or exchange any Debentures.
The Debentures are listed on the TSX under the symbol “CJT.DB.D” and will be delisted from the facilities of the Toronto Stock Exchange in connection with the redemption of the Debentures. The 5.75% senior unsecured hybrid debentures due April 30, 2025 and the 5.25% senior unsecured hybrid debentures due June 30, 2026 remain outstanding and continue to be listed on the TSX under the symbols “CJT.DB.E” and “CJT.DB.F”, respectively.
Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America, providing dedicated, ACMI and international charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of 39 cargo aircraft.
For further information, please contact:
Chief Corporate Officer
Tel: (905) 501-7373
Notice on Forward Looking Statements:
Certain statements contained herein constitute “forward-looking statements”, including with respect to the Corporation’s intention to redeem all of its then-outstanding Debentures, as described above, and the timing and benefits of such redemption. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the Corporation’s most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Consolidated Financial Statements and Notes thereto and related Management’s Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The forward-looking statements contained or incorporated by reference in this news release represent Cargojet’s expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and are subject to change after such date. However, Cargojet disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required under applicable securities laws. In the event Cargojet does update any forward-looking statement, no inference should be made that Cargojet will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.