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Cargojet greenshoe exercised in full, lifts 7.5% convertibles due 2013 to C$35.65 million
By Devika Patel
Knoxville, Tenn., April 16 - Underwriters for Cargojet Income Fund's 7.5% subordinated unsecured convertible debentures due 2013 exercised their over-allotment option in full for C$4.65 million more of the notes, increasing the size of the issue to C$35.65 million, the company said in a news release.
As previously reported, Cargojet sold the notes at par on March 19 to a syndicate of underwriters led by RBC Capital Markets. The notes have a conversion premium of 22% and a conversion price of C$16.
Net proceeds are expected to be used to finance the start-up costs for its previously announced wide body aircraft program of C$12 million, finance the construction of a hangar for the wide body aircraft of C$9 million, finance the previously announced acquisition of 51% of Prince Edward Air, temporarily repay current debt under the credit facility and for general corporate purposes.
Cargojet is a Canadian provider of overnight air cargo services.
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