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

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.