CAE plans $550 million of notes; Central Federal places $10 million

By Devika Patel

Knoxville, Tenn., Dec. 21 – Friday saw a little private placement activity, as two issuers advanced deals.

CAE, Inc., the Montreal-based provider of simulation and training solutions for airlines and the military, arranged a $550 million private placement of senior notes.

The notes will be issued in several dollar-denominated tranches with fixed interest rates ranging from 4.45% to 4.9% annually and maturities ranging from 10 to 15 years, according to a company announcement.

TD Securities is the agent.

The notes were issued to 19 large institutional investors in the United States and Canada.

Also, Worthington, Ohio-based financial holding company Central Federal Corp. completed a $10 million private placement of 7% fixed-to-floating rate subordinated notes due Dec. 30, 2028.

Interest accrues at 7% per year until Dec. 30, 2023. From then onwards, the notes will bear interest at a floating rate equal to Libor plus 414 basis points.

The notes are redeemable on any interest payment date on or after Dec. 30, 2023.

Sandler O’Neill + Partners, LP was the agent.

Proceeds will be used for organic growth, to support bank-level regulatory capital ratios, to partially repay a credit facility and for other general corporate purposes.

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