13-Jan-2021 9:24 AM

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]

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More