CAE announces a $300 million public offering of common shares and a concurrent $150 million private placement with CDPQ

• Bought deal for 10,060,000 shares at $29.85 per share with 15% Over-Allotment Option
• Concurrent Private Placement with CDPQ at $29.85 per share for aggregate $150 million
• Use of proceeds for general corporate purposes, including funding future potential acquisition and growth opportunities
  

MONTREAL, Nov. 16, 2020 (GLOBE NEWSWIRE) -- (NYSE: CAE; TSX: CAE) - CAE Inc. (“CAE” or the “Corporation”) today announced that it has entered into an agreement with Scotia Capital Inc. RBC Dominion Securities Inc. and TD Securities Inc., on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Corporation will issue from treasury, and the Underwriters shall purchase on a “bought deal” basis, 10,060,000 common shares (the “Shares”) at a price of $29.85 per Share (the “Offer Price”) for gross proceeds to the Corporation of approximately $300 million (the “Offering”).

In addition, CAE has entered into an agreement under which the Corporation will complete a private placement in Canada of common shares at the Offer Price with Caisse de dépôt et placement du Québec (“CDPQ”), for aggregate gross proceeds to the Corporation of approximately $150 million (the “Private Placement”).

CAE intends to use the net proceeds of the Offering and the concurrent Private Placement for general corporate purposes, including to fund future potential acquisition and growth opportunities. This will include the funding of the acquisition of Flight Simulation Company B.V., which was also announced today by way of a separate press release. Pending such uses, CAE intends to invest the net proceeds from the Offering, hold them as cash or cash equivalents, or repay indebtedness outstanding under its credit facilities, which may be withdrawn again as opportunities arise.

The Underwriters have been granted an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part on the same terms as the Offering for a period of 30 days from the closing of the Offering, to issue additional Shares, representing up to 15% of the number of common shares sold pursuant to the Offering, for additional gross proceeds of up to $45 million.

The Shares issued pursuant to the Offering and Over-Allotment Option will be offered in all provinces of Canada by way of a prospectus supplement (the “Prospectus Supplement”) to a short form base shelf prospectus (the “Final Base Shelf Prospectus”). CAE has filed a registration statement on Form F-10, and will file the Prospectus Supplement, with the U.S. Securities and Exchange Commission (the “SEC”) in accordance with the multi-jurisdictional disclosure system established between Canada and the United States (“MJDS”).