OTTAWA, ONTARIO--(Marketwired - April 16, 2013) - NAV CANADA has agreed to sell a new issue of $350 million 5-year General Obligation Notes. The notes bear interest at the rate of 1.949 per cent per annum. After considering issue costs and the settlement of a bond forward transaction that the Company had entered into to hedge interest costs related to this issue, the effective interest rate to the Company will be approximately 2.16 per cent. Closing is scheduled to occur on April 19, 2013.
The proceeds of the notes will be used to repay the Company's $250 million Series MTN 2010-1 Medium Term Notes that will mature on April 29, 2013 and the balance of such proceeds will be used to finance the activities and investments of the Company, including to finance required contributions to the Company's pension plans.
NAV CANADA is the country's private sector civil air navigation service provider. With operations from coast to coast to coast, NAV CANADA provides air traffic control, flight information, weather briefings, aeronautical information services, airport advisory services and electronic aids to navigation.