), a provider of simulation equipment announced an issue of
senior unsecured notes.
The notes are worth roughly US$350 million and carry both
fixed and floating rates of interest, where the floating rates
vary from 3.6 to 4.2 percent. The maturity of the notes is
estimated to range from seven to fifteen years. The proceeds from
the offer will be utilized to refinance the existing debt.
The notes are privately issued in several US and Canadian
dollar denominated tranches, including 11 large institutional
investors in both the countries.
The company has a strong balance sheet with a sturdy cash
position. Exiting the second quarter of fiscal 2013, the company
had cash and cash equivalents of CAD229.4. Along with this, CAE
generated CAD45.4 million in operating activities for the quarter
as compared to CAD129.2 million in the year ago comparable
quarter. Total interest paid for the quarter reached CAD13.8
million against CAD10.3 million for the second quarter of fiscal
2012. At the end of second quarter of fiscal 2013, the company
had approximately $995 million in net debt.
CAE is a world leader in providing simulation and modeling
technologies, along with training and company design. This
includes integrated modeling, simulation and training solutions
for commercial airlines, aircraft manufacturers and military
organizations and a global network of training centers for
pilots. The company, headquartered in Canada, operates in over 30
countries along with over 100 training centers globally. Along
with the current operations, the company is leveraging its
simulation capabilities in industries such as healthcare and
The company currently holds a Zacks #3 Rank (a short-term
'Hold' rating). The company faces stiff competition from
), holding a Zacks #3 Rank and
Triumph Group Inc.
), holding a Zacks #1 Rank, (a short-term 'Strong Buy'
AAR CORP (AIR): Free Stock Analysis Report
CAE INC (CAE): Free Stock Analysis Report
TRIUMPH GRP INC (TGI): Free Stock Analysis
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