CAE, the Solidarity Fund QFL and Société générale de financement du Québec (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 Québec 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 Québec 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 Québec companies is one of our main concerns. We are therefore very proud to take part in this business partnership which boosts Québec 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 Québec company.
"This innovating financing solution boosts Québec 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.”
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