Cargojet Announces the Successful Closing of its $275 million Banking Facility

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Cargojet Announces the Successful Closing of its $275 million Banking Facility

Canada NewsWire

MISSISSAUGA, ON, April 10, 2017 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT, CJT.A) announced today that it had amended its syndicated banking facility to increase its revolving credit facility from $175 million to $200 million. Additionally, a 5-year term loan facility of up to $75 million was added that will be used to fund the acquisition and re-financing of aircraft.  Cargojet is able to draw up to $75 million of the term loan facility over a period of 12 months.  "We are very pleased with the support we have received from our banking syndicate and the flexibility of the amended facility. The new term loan and the increase in our revolving credit facility will provide funding to support our fleet plans to replace older B727 aircraft and our leased B767 and B757 aircraft," said Ajay K. Virmani, President & CEO.

The banking syndicate is led by RBC and includes National Bank, CIBC, Scotiabank and BMO.

Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carries approximately 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of 20 all-cargo aircraft. The Corporation operates over 9,000 flight legs yearly and has a team of over 700 dedicated professionals. For more information, please visit: www.cargojet.com.

Notice on Forward Looking Statements

Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements include statements relating to the approval of the amended AVP and RSUP and, further, may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the issuer's most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Quarterly Financial Statements and Notes thereto and related Management's Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

SOURCE Cargojet Inc.

To view the original version on PR Newswire, visit: http://www.newswire.ca/en/releases/archive/April2017/10/c4048.html

Copyright CNW Group 2017

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