CAE, the Solidarity Fund QFL and SGF create a financing tool for civil flight simulators
July 24, 2009, Montreal, (Marketwire) - CAE, the Solidarity Fund QFL and Societe generale de financement du Quebec (SGF) today announced the creation of a limited partnership to provide qualifying customers competitive lease financing for CAE's civil flight simulation equipment manufactured in Quebec and exported around the world.
|July 24, 2009, Montreal, (Marketwire) – CAE, the Solidarity Fund QFL and Societe generale de financement du Quebec (SGF) today announced the creation of a limited partnership to provide qualifying customers competitive lease financing for CAE's civil flight simulation equipment manufactured in Quebec and exported around the world. The investments of the Solidarity Fund QFL and SGF are made within the framework of the new joint fund of $500 million announced in the latest budget of the Quebec Government.
The partners have invested US$3 million (C$3.3 million) in equity to create the limited partnership based on the following holdings: SGF 40.25%, Solidarity Fund QFL 40.25% and CAE 19.5%. The partners also committed to fund the partnership with up to US$60 million (C$66 million) in debt, in the following proportions: SGF 37.5%, Solidarity Fund QFL 37.5% and CAE 25%. Qualifying customers may access financing under this structure which would be in addition to financing of up to 85% of the equipment value available from Export Development Canada.
"Our partnership with the Solidarity Fund QFL and SGF gives us greater flexibility to meet our customers' needs with CAE's best-in-class simulation-based training solutions," said Robert E. Brown, CAE President and Chief Executive Officer. "Generations of customers have come to expect CAE to lead the market with innovative solutions to help them manage ever-changing conditions. CAE's flight simulators have stood the test of time, having proven to be reliable and financially predictable assets. With this new financing tool we are making our solutions even more accessible."
"The Solidarity Fund QFL supports the implementation of this new financial tool and is convinced that it will allow CAE to improve its service offering with turnkey solutions for its customers. This initiative comes at the right time, in the current economic climate where capital is more difficult to find. For the Solidarity Fund QFL, the competitive edge of Quebec companies is one of our main concerns. We are therefore very proud to take part in this business partnership which boosts Quebec and maintains high-quality jobs in a leading edge sector," said Yvon Bolduc, President and Chief Executive Officer of the Solidarity Fund QFL.
SGF management is pleased to support this joint initiative which furthers the economic growth of a successful Quebec company. "This innovating financing solution boosts Quebec exports and represents the opportunity to preserve jobs in a sector of activity with high economic impact," said SGF President and General Manager, Pierre Shedleur. "This investment will enable CAE to maintain its position as world leader and remain competitive."
SGF and Solidarity Fund QFL joint fund
The investments of the Solidarity Fund QFL and SGF are made within the framework of the new joint fund of $500 million announced in the latest budget of the Quebec Government, the capital being injected equally by SGF and the Solidarity Fund QFL. This initiative will provide support to medium and large businesses during this period of economic crisis.
CAE (TSX:CAE)(NYSE:CGT) is a world leader in providing simulation and modelling technologies and integrated training solutions for the civil aviation industry and defence forces around the globe. With annual revenues exceeding C$1.6 billion, CAE employs more than 6,500 people at more than 75 sites and training locations in 20 countries. We have the largest installed base of civil and military full-flight simulators and training devices. Through our global network of 29 civil aviation and military training centres, we train more than 75,000 crewmembers yearly. We also offer modelling and simulation software to various market segments and, through CAE's professional services division, we assist customers with a wide range of simulation-based needs. www.cae.com
About Solidarity Fund QFL
With net assets of $6.4 billion as at May 31, 2009, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Quebec's economic growth. The Fund is a partner, either directly or through its network members, in 2,000 companies. It currently has nearly 571,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect nearly 143,000 jobs. For more information, visit www.fondsftq.com.
About Societe generale de financement du Quebec
Societe generale de financement du Quebec (www.sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, with emphasis on the industrial sector, in co-operation with partners and on standard profitability conditions, in accordance with the economic development policy of the Quebec government. As part of its new mandate, SGF is authorized by the Quebec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred capital-share investments.