Cargojet Announces Closing of $74 Million Bought Deal Offering of 5.50% Convertible Unsecured Subordinated Debentures
April 29, 2014
Mississauga (Ontario) Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT, CJT.A) is pleased to announce that it has closed its previously announced offering of C$67 million aggregate principal amount of convertible unsecured subordinated debentures due June 30, 2019 (the "Debentures") at a price of $1,000 per Debenture. Cargojet is also pleased to announce that the syndicate of underwriters led by RBC Capital Markets has exercised its option to purchase an additional C$7 million principal amount of Debentures for aggregate gross proceeds to Cargojet from the offering of C$74 million.
The Debentures are subordinated, unsecured obligations of Cargojet and bear interest at a rate of 5.50% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, commencing December 31, 2014. The Debentures are convertible at any time at the option of holders into common voting shares or variable voting shares, as applicable, at a conversion price of C$28.75 per share.
Cargojet intends to use the approximate C$71 million net proceeds of the offering to finance a portion of the expansion of its domestic air cargo network related to its recently awarded contract with the Canada Post Corporation and Purolator Inc. (“MSA”).
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 750,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft.
For further information, please contact:
Pauline Dhillon
Vice President Marketing, Public & Government Relations
Tel: (905) 501 7373
pdhillon@cargojet.com
Notice on Forward Looking Statements:
Certain statements contained herein constitute "forward-looking statements". 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 issuer's most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Quarterly 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 issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.