Business
Cargojet Announces Inaugural Offering of Investment Grade Senior Unsecured Notes
Cargojet Announces Inaugural Offering of Investment Grade Senior Unsecured Notes Canada...
About this update from Cargojet Inc.
[{"type":"text","content":"\n\n\n\n Cargojet Announces Inaugural Offering of Investment Grade Senior Unsecured Notes\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n MISSISSAUGA, ON\n \n\n ,\n \n\n June 25, 2025\n \n\n /CNW/ - Cargojet Inc. (\"\n \n Cargojet\n \n \" or the \"\n \n Corporation\n \n \") (TSX: CJT) today announced that it has priced an offering (the \"\n \n Offering\n \n \") of\n \n $250 million\n \n aggregate principal amount of 4.599% senior unsecured notes due 2030 (the \"\n \n Notes\n \n \"). The net proceeds from the Offering are expected to be used to redeem in full Cargojet's 5.25% listed senior unsecured hybrid debentures due\n \n June 30, 2026\n \n , repay indebtedness under Cargojet's credit facilities and for general corporate purposes. The Notes have been assigned a provisional rating of BBB (low), with a stable trend, by Morningstar DBRS.\n \n\n In a joint statement, Co-Chief Executive Officers of Cargojet,\n \n Jamie B. Porteous\n \n and\n \n Pauline Dhillon\n \n , commented, \"This note offering is the result of Cargojet's multi-year journey to strengthen and reshape our business portfolio and redesign the balance sheet with an investment grade approach. We are pleased to reestablish a base level of term debt, with a lower cost and more flexible structure, as the notes do not include any financial or maintenance covenants. Maintaining the investment grade rating and strength of our financial position is a key priority for Cargojet to assist us in pursuing flexible financing opportunities depending on market conditions.\"\n \n\n The Notes will be senior unsecured obligations of Cargojet that will rank equally with all other present and future unsecured and unsubordinated indebtedness and will be guaranteed on a senior unsecured basis by certain of Cargojet's subsidiaries. The Notes are being offered on a private placement basis in each of the Provinces of\n \n Canada\n \n in reliance upon exemptions from the prospectus requirements under applicable securities laws.\n \n\n The Offering is being led by Scotia Capital Inc. and RBC Capita...