Cargojet Inc. has 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”) following 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. Following 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.
