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CAE Raises USD$350 Mln In Debt Financing

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CAE said it raised USD$350 million in new debt financing, which the Canadian aviation training and flight simulator maker will use mainly to refinance existing debt.

Separately, the Caisse de depot et placement du Quebec, one of Canada's largest pension funds, said it had invested USD$50 million in CAE as part of the financing.

The financing took the form of a private placement of unsecured senior notes with 11 large institutional investors in Canada and the United States, CAE said.

"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," said Stephane Lefebvre, CAE's vice-president, finance, and chief financial officer.

Lefebvre said the note issue locked in CAE's interest costs at "attractive rates" for up to 15 years.

(Reuters)