Cargojet greenshoe lifts 5.75% hybrid debentures to C$115 million

By Wendy Van Sickle

Columbus, Ohio, April 26 – Underwriters for Cargojet Inc.’s 5.75% hybrid debentures due April 30, 2025 exercised their C$15 million greenshoe, increasing the total deal size to C$115 million, according to a news release issued on Friday.

The company priced C$100 million of the debentures at par after the market close on March 27, as previously reported.

RBC Capital Markets and CIBC World Markets led the syndicate of underwriters for the bought deal.

The debentures are non-callable until April 30, 2023, are redeemable at 102.875 until April 30, 2024 and are redeemable at par onwards.

The debentures may be settled in shares equal to the principal amount of the notes at maturity.

Proceeds will be used to pay down the company’s revolving credit facility and for future capital expenditures, including the purchase of aircraft.

Cargojet is a Mississauga, Ont.-based overnight air cargo services company.

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