MISSISSAUGA, ON, May 15, 2017 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT, CJT.A) announced today that on July 5, 2017 (the "Redemption Date") it intends to redeem in full all of its then outstanding 5.5% convertible unsecured subordinated debentures due June 30, 2019 (the "Debentures") in accordance with the provisions of the indenture dated as of April 29, 2014 (the "Indenture") between the Corporation and Computershare Trust Company of Canada (the "Trustee").
The redemption price for the Debentures shall be 100% of the aggregate outstanding principal amount ("Redemption Price"), together with accrued and unpaid interest up to, but excluding, the Redemption Date. In accordance with the Indenture, the Company intends to elect to satisfy its obligation to pay the Redemption Price by issuing to Debenture holders common voting shares ("Common Voting Shares") or variable voting shares (together with the Common Voting Shares, "Voting Shares"), as applicable, in the capital of the Corporation and to pay all accrued and unpaid interest up to, but excluding, the Redemption Date, in cash. The number of Voting Shares delivered will be determined by dividing the Redemption Price by 95% of the then current market price (as defined in the Indenture) of the Common Voting Shares on the Redemption Date in accordance with the terms of the Indenture.
Debenture holders have the right, by giving notice to the Trustee by no later than 5:00 p.m. (Toronto time) on July 4, 2017, to elect to convert their debentures into Voting Shares at the conversion price in effect on the date of conversion in accordance with the terms of the Indenture.
Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carries approximately 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of 19 all-cargo aircraft. The Corporation operates over 12,000 flight legs yearly and has a team of over 800 dedicated professionals. For more information, please visit: www.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 it's most recent Annual 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 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.
SOURCE Cargojet Inc.
For further information: Pauline Dhillon, Executive Vice President Marketing, Government & Public Relations, Tel: (905) 501 7373, [email protected]