/NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED
STATES/
MISSISSAUGA, ON, Nov. 6, 2018 /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$75 million aggregate principal amount of 5.75%
listed senior unsecured hybrid debentures (the "Debentures") at a
price of C$1,000 per Debenture (the
"Offering"). The Debentures bear interest at a rate of 5.75% per
annum, payable semi-annually in arrears on April 30 and October
31 of each year, commencing April 30,
2019, and will mature on April 30,
2024.
The Offering was made pursuant to a final short form prospectus
dated October 30, 2018, and the
Debentures will commence trading today on the Toronto Stock
Exchange under the symbol "CJT.DB.D".
The Corporation intends to use the net proceeds of the Offering
to pay down the Corporation's revolving credit facility that has
been drawn to support engine and aircraft purchases, and to free up
capacity to fund anticipated capital expenditures, including
aircraft, in the future.
The Debentures were offered by a syndicate of underwriters
co-led by RBC Capital Markets and CIBC Capital Markets. The
Corporation has granted to 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 $11,250,000 aggregate
principal amount of Debentures, on the same terms and conditions as
the Offering.
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 "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 public filings available at www.sedar.com and at
www.cargojet.com, including its 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
material risks. These risks are not intended to represent a
complete list of the risks that could affect the Corporation;
however, these risks should be considered carefully. Actual results
may materially differ from expectations, if known and unknown risks
or uncertainties affect our business, or if the Corporation's
estimates or assumptions prove inaccurate. The forward-looking
statements contained herein describe the Corporation's expectations
at the date of this news release and, accordingly, are subject to
change after such date. 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 Corporation will make additional updates
with respect to that statement, related matters, or any other
forward-looking statement. Readers are cautioned not to place undue
reliance on these forward-looking statements.
SOURCE Cargojet Inc.