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Press release from CNW Group

Cargojet announces closing $28,750,000 bought deal offering of 6.5% convertible unsecured subordinated debentures

Wednesday, March 21, 2012

Cargojet announces closing $28,750,000 bought deal offering of 6.5% convertible unsecured subordinated debentures08:30 EDT Wednesday, March 21, 2012/NOT FOR RELEASE OVER US NEWSWIRE SERVICES OR DISSEMINATION IN THE US/MISSISSAUGA, ON, March 21, 2012 /CNW/ - Cargojet Inc. ("Cargojet") (TSX: CJT, CJT.A) is pleased to announce that it has closed its previously announced offering of C$25,000,000 aggregate principal amount of convertible unsecured subordinated debentures due April 30, 2017 (the "Debentures") at a price of $1,000 per Debenture (the "Offering"). Cargojet is also pleased to announce that the syndicate of underwriters led by RBC Capital Markets has exercised its option to purchase an additionalC$3,750,000principal amount of Debentures for aggregate gross proceeds to Cargojet from the Offering of C$28,750,000.The Debentures are subordinated, unsecured obligations of Cargojet and bear interest at a rate of 6.50% per annum, payable semi-annually in arrears on April 30 and October 31 of each year, commencing April 30, 2012. The Debentures are convertible at any time at the option of the holders into common voting shares or variable voting shares, as applicable, at a conversion price of C$11.75 per share. The Debentures mature on April 30, 2017.Cargojet intends to use the approximate $27.2 million in net proceeds of the Offering to redeem its outstanding  $24.6 million aggregate principal amount of 7.5% convertible unsecured subordinated debentures due April 30, 2013 (the "2008 Debentures") and the balance for general corporate and working capital purposes.  The Corporation has provided the requisite notice of redemption to the trustee of the 2008 Debentures and will provide notice to the holders of the 2008 Debentures, with redemption to occur on May 1, 2012.The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.Cargojet is Canada's leading provider of time sensitive overnight air cargo services. Cargojet operates its network across North America each business night, utilizing a fleet of twelve all-cargo aircraft.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 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.For further information: P. Dhillon Vice President Marketing, Public & Government Relations Tel: (905) 501 7373