MISSISSAUGA, ON, Nov. 14,
2023 /CNW/ - 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.
About Cargojet
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.
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.
SOURCE Cargojet Inc.