CAE Inc. closes issuance of US$450M principal amount of Senior Notes

On March 14, 2019, CAE Inc. (NYSE: CAE; TSX: CAE) announced the completion of its previously announced acquisition of Bombardier’s Business Aircraft Training (“BAT”) business for an enterprise value of US$645 million.

The acquisition of these flight and technical training operations expands CAE’s ability to address the training market for customers operating Bombardier business jets, which at more than 4,800 aircraft, is one of the largest and most valuable in-service fleets of business aircraft in the world. The acquisition also serves to expand CAE’s position in the largest and fastest growing segment of the business aviation training market, involving medium- and large-cabin business jets.

As part of the financing for the purchase price of this acquisition, CAE also completed the issuance of US$450 million aggregate principal amount of senior unsecured notes, as announced on December 21, 2018. The notes were issued in several US dollar denominated tranches with fixed interest rates ranging from 4.45% to 4.90% annually and maturities ranging from 10 to 15 years. Noteholders include large institutional investors in the United States and Canada. TD Securities acted as agent on this private placement transaction.

CAE was represented in-house with a team led by Claudia Michaud, Legal Counsel. Norton Rose Fulbright Canada LLP acted as counsel to CAE and its subsidiaries in connection with the notes private placement. The multi-jurisdictional Norton Rose Fulbright team was led by Pete Wiazowski in Montréal, and also included Ahad Ahmed and Sarah Pennington (Toronto), Tomas Gardfors and Jamie Munro (London), Stephane Braun and Charlene Thibaudon (Luxembourg) and Dirk Trautmann, Thomas Boehringer and Joanna von Proff (Munich). Derek Chiasson advised regarding Canadian tax matters (Montréal).

The notes purchasers were represented by King & Spalding LLP (Atlanta), with a team led by Carolyn Alford and including Hector Llorens, William Westbrook and Ashley van de Vender. TD Securities, as agent was represented in-house by Carole Choe, Senior Counsel.

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