MONTREAL, July 9 /PRNewswire-FirstCall/ - (NYSE:CGT) (TSX:CAE) - CAE today announced it has secured US$105 million in long-term, non-recourse financing in support of the expansion of its training centres in Burgess Hill, U.K. and Morristown, New Jersey. US$71 million has been drawn as of June 30, 2007, and the remaining is expected to be drawn by the end of the fiscal year.
"Our ability to raise non-recourse financing secured by specific training assets and cash flow is a testament to the credibility of our Civil Training and Services business," said Alain Raquepas, CAE's Vice President, Finance and Chief Financial Officer. "Through this agreement, we are achieving our objective to obtain long-term financing to support our growth initiatives in aviation training."
The US$105 million financing is funded in seven-year and 11-year tranches. US-based institutional investors subscribed to a private placement for 60 percent of the total financing, while Export Development Canada (EDC) underwrote the remaining 40 per cent through a loan facility. SG Americas Securities LLC acted as financial advisor and EDC acted as lead arranger to CAE.
CAE's Burgess Hill training centre currently houses eight simulator bays and CAE announced that it will be expanded to 12 later this year. It houses Airbus A320, A340-600 and Boeing B747-400 full-flight simulators for commercial aviation training. Furthermore it is the European home for business aviation training. It offers Falcon 900EX EASy and Falcon 2000EX EASy training programs, as well as training for the new flagship Falcon 7X for which CAE is the exclusive training provider. CAE's business aviation training centre in New Jersey currently offers training on five simulators, including: Dassault Falcon 7X, Falcon 900EX EASy, Falcon 2000EX EASy, Gulfstream IV, and Sikorsky S-76 aircraft. In June, CAE announced that it would expand the centre to twelve simulator bays in order to meet increased demand.
CAE is a world leader in providing simulation and modelling technologies, and integrated training services to the civil aviation industry and defence forces around the globe. We design, manufacture and supply simulation equipment and offer training and services. This includes integrated modelling, simulation and training solutions for commercial airlines, business aircraft operators, aircraft manufacturers and military organizations and a global network of training centres for pilots, and in some instances, cabin crew and maintenance workers.
With annual revenues of over C$1 billion, CAE operates in 19 countries around the world. CAE has sold nearly 700 simulators and training devices to airlines, aircraft manufacturers, training centres and defence forces for air and ground purposes in more than 40 countries. We have over 110 full-flight simulators in more than 20 aviation training centres, serving approximately 3,500 airlines, aircraft operators and manufacturers across the globe. CAE licenses its simulation software to various market segments and has a professional services division assisting customers with a wide range of simulation-based needs.
Source: CAE INC.