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Sunday, December 30, 2012

CAE issues approximately US$350 million of senior unsecured notes

MONTREAL, CANADA—(Marketwire – Dec. 27, 2012) – (NYSE:CAE)(TSX:CAE) – CAE today announced that it has issued approximately US$350 million in a series of unsecured senior notes in a private placement.

The notes are issued in several US and Canadian dollar denominated tranches with floating and fixed interest rates, the latter ranging from approximately 3.6 to 4.2 percent annually with maturities ranging from seven to 15 years.

The offering includes 11 large institutional investors in both the United States and Canada with an aggregate of approximately US$350 million in a series of notes being issued to mainly refinance existing debt.

“We are very pleased to have entered into this notes offering, which locks in our interest costs at attractive rates for up to fifteen years,” said Stéphane Lefebvre, CAE’s Vice President, Finance and Chief Financial Officer.

“The refinancing enhances CAE’s capital structure with a mix of currencies, terms and interest rates that align well with our long-term strategy and allow flexibility to further strengthen our balance sheet in the periods ahead. The private placement includes some of our long-time institutional investors and several new investors, which is a good reflection of the market’s confidence in CAE.”

RBC Capital Markets, Scotiabank and TD Securities are acting as joint bookrunners on this transaction.

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