Cargojet Announces Closing of $74 Million Bought Deal Offering of 5.50% Convertible Unsecured Subordinated Debentures

MISSISSAUGA, ONTARIO--(Marketwired - April 29, 2014) -

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Cargojet Inc. ("Cargojet" or the "Corporation") (TSX:CJT)(TSX:CJT.A) is pleased to announce that it has closed its previously announced offering of C$67 million aggregate principal amount of convertible unsecured subordinated debentures due June 30, 2019 (the "Debentures") at a price of $1,000 per Debenture. Cargojet is also pleased to announce that the syndicate of underwriters led by RBC Capital Markets has exercised its option to purchase an additional C$7 million principal amount of Debentures for aggregate gross proceeds to Cargojet from the offering of C$74 million.

The Debentures are subordinated, unsecured obligations of Cargojet and bear interest at a rate of 5.50% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, commencing December 31, 2014. The Debentures are convertible at any time at the option of holders into common voting shares or variable voting shares, as applicable, at a conversion price of C$28.75 per share.

Cargojet intends to use the approximate C$71 million net proceeds of the offering to finance a portion of the expansion of its domestic air cargo network related to its recently awarded contract with the Canada Post Corporation and Purolator Inc. ("MSA").

The securities issued pursuant to the offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, 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 nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carries over 750,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft.

Notice on Forward Looking Statements:

Certain statements contained herein, including statements related to use of net proceeds of the offering and the expansion of the Corporation's domestic air cargo network related to the MSA, 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 "will", "may", "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current assumptions and expectations of management and entail various risks and uncertainties. Factors that could cause results to differ materially from those contemplated or implied by the forward-looking statements include: economic or financial conditions in North America and the financial markets, including fluctuations in interest rates as well as failure to realize the benefits under the MSA. Reference should be made to the Corporation's public filings 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 Corporation 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 Corporation 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.