Cargojet raises USD275m for expansion, to acquire five 767Fs and two 777Fs

Cargojet entered (12-Jan-2021) an agreement with a syndicate of underwriters for the sale of 1.642 million common voting shares and/or variable voting shares at CAD213.25 (USD167.7) per share, resulting in aggregate gross proceeds of CAD350.16 million (USD275.4 million). Cargojet granted the underwriters an over-allotment option to purchase up to an additional 246,300 shares at the offering price. Scotiabank, CIBC Capital Markets, RBC Capital Markets, J P Morgan Securities Canada, Morgan Stanley Canada and BMO Capital Markets are acting as co-leads and joint bookrunners on behalf of the underwriters. Cargojet will use the net proceeds of the offering for the following:

• Expand domestic capacity and facilities: Planned capital expenditures include the acquisition of five Boeing 767F aircraft for delivery in 2021/2022, investments in a new hangar and additional infrastructure in Canada to support growing e-commerce volumes;
• Pursue US and international growth strategy: The company intends to capitalise on potential strategic investments in the US and acquire two 777F aircraft for delivery in 2023 to operate international routes;
• Repay indebtedness: Discharge financial leases on six aircraft maturing in FY2021 and fully pay down outstanding revolver balances. [more - original PR]