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

/NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

MISSISSAUGA, ON, Sept. 15, 2016 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT, CJT.A) is pleased to announce that it has closed its previously announced offering of C$115 million aggregate principal amount of 4.65% convertible unsecured subordinated debentures due December 31, 2021 (the "Debentures") at a price of C$1,000 per Debenture (the "Offering"). Cargojet is pleased to announce that the syndicate of underwriters led by RBC Capital Markets and National Bank Financial has exercised its over-allotment option in full to purchase an additional C$10 million aggregate principal amount of Debentures for aggregate gross proceeds to Cargojet from the Offering of C$125 million.

The Debentures are subordinated, unsecured obligations of Cargojet and bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, commencing December 31, 2016. The Debentures are convertible at any time at the option of the holders into common voting shares or variable voting shares, as applicable, at a conversion price of C$58.65 per share. The Debentures will mature on December 31, 2021.

The Corporation 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. 

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.

Notice on Forward-Looking Statements:

Certain statements contained herein, including statements related to the use of the net proceeds of the Offering, 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 "will," "may," "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current assumptions and expectations of management and entail various risks and uncertainties. Factors that could cause results to differ materially from those contemplated or implied by the forward-looking statements include economic or financial conditions in North America and the financial markets, including fluctuations in interest rates. Reference should be made to the Corporation'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 Corporation 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 Corporation 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.

SOURCE Cargojet Inc.

For further information: Pauline Dhillon, Executive Vice President Marketing, Public & Government Relations, Tel: (905) 501-7373, pdhillon@cargojet.com


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