Daily News: April 11, 2017

RBC-led Syndicate Upsizes Cargojet Facility by $100MM

Cargojet amended its syndicated banking facility to increase its revolving credit facility from $175 million to $200 million.

Additionally, a five-year term loan facility of up to $75 million was added that will be used to fund the acquisition and refinancing of aircraft. Cargojet is able to draw up to $75 million of the term loan facility over a period of 12 months.

The banking syndicate for the transaction was led by RBC and includes National Bank of Canada, CIBC, Scotiabank and BMO.

“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 and CEO.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries approximately 1.3 million pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of 20 all-cargo aircraft.