CAE Inc. (NYSE: CAE) announced today that it has priced a private offering of $400 million aggregate principal amount of 5.541% Series 1 Senior Unsecured Notes due June 12, 2028 (the Notes) (the Offering). The Notes are being offered through a syndicate of agents led by RBC Dominion Securities Inc., Scotia Capital Inc. and TD Securities Inc., as joint bookrunners (the Lead Agents), and HSBC Securities (Canada) Inc., National Bank Financial Inc., BMO Nesbitt Burns Inc., Merrill Lynch Canada Inc., CIBC World Markets Inc., Desjardins Securities Inc., BNP Paribas (Canada) Securities Inc., Citigroup Global Markets Canada Inc. and J.P. Morgan Securities Canada Inc., as agents (collectively, the Agents). The Corporation intends to use the net proceeds of this Offering to repay existing indebtedness and for other general corporate purposes. The Offering is expected to close on or about June 12, 2023, subject to customary closing conditions.
The Notes will be issued at par and will bear interest at the rate of 5.541% per annum, payable in equal semi-annual instalments, in arrears, on June 12 and December 12 of each year commencing on December 12, 2023, until maturity. The Notes will be direct, senior unsecured obligations of the Corporation, and will rank pari passu in right of payment with each other series of unsecured unsubordinated notes that may be issued under the Trust Indenture (regardless of their series or actual dates or terms of issue) and with all other existing and future unsecured and unsubordinated indebtedness of the Corporation. The Notes will be guaranteed, jointly and severally, on a senior unsecured basis, by certain of the Corporation's subsidiaries. The Notes have been assigned a provisional rating of BBB-, with a stable trend, by S&P Global Ratings.
The Notes are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation. The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Notes in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Notes and the related guarantees have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration under, or an applicable exemption from the registration requirements of, the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer to sell or a solicitation of an offer to buy the Notes in any jurisdiction in which it is unlawful to do so.
Tweet
Share
E-mail
Up)
