Cargojet secures funding for freighter conversion
24 / 07 / 2015
Funds belonging to Tennenbaum Capital Partners (TCP) are to provide up to $82.5m of financing to Cargojet to fund the acquisition and conversion of B767-300ER passenger aircraft into freighters.
The transaction will provide the Canada-based overnight airfreight operator with additional capacity to support its growing business.
"We have a long history of investing in the aircraft industry and Cargojet is a best in class operation with a premier customer base," said Rob DiPaolo, managing director of TCP, adding: "We are pleased to provide capital to Cargojet to support its expanding fleet requirements."
Ajay Virmani, president and chief executive of Cargojet, said: “These new generation, long range, fuel efficient and environmentally friendly aircraft will enable us to expand the geographic reach and capacity of our network."
Cargojet operates a freighter network across North America using a fleet of Boeing 767-300ERs, Boeing 767-200ERs, Boeing 757-200ERs and Boeing 727-AFs.
Capital Canada Ltd acted as financial advisor to Cargojet on the funding transaction.