Cargojet greenshoe ups 4.65% five-year convertibles to C$125 million

By Susanna Moon

Chicago, Sept. 15 – Cargojet Inc. said underwriters exercised C$10 million of the over-allotment option on its upsized offering of 4.65% five-year convertible unsecured subordinated debentures.

This brings the total deal size to C$125 million, according to a company notice.

Cargojet priced C$100 million of the convertibles with a C$15 million greenshoe after the close on Aug. 25 with a 4.65% coupon at par and a 33% initial conversion premium, then upsized the deal to C$115 million.

RBC Capital Markets and National Bank Financial are the lead managers for the Regulation S sale.

Proceeds will be used to refinance about C$103 million of U.S. dollar-denominated aircraft finance loans, with the balance, if any, used for general corporate purposes.

The debentures are being sold publicly under a short-form prospectus in all the provinces of Canada excluding Quebec.

Cargojet is a Canadian-based provider of overnight air cargo services.

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