The Caisse de dépôt et placement du Québec and Gildan Activewear Inc. have reached an agreement that will see the Montreal-based apparel manufacturer issue $200 million in senior unsecured notes on a private placement basis to the investment organization.
Gildan will issue notes with an annual interest rate of six per cent and will mature five years from their date of issue.
In a press release, Kim Thomassin, executive vice-president and head of Quebec at the Caisse, said this is the first step in the investment organization’s plans to become a significant shareholder of the company. “With its renewed board of directors and its new chief executive officer, Gildan has the right business plan and is making clear commitments to maintain its head office in Quebec and to pay the global minimum tax. This is why the [Caisse] decided to support the growth of this large Quebec company.”
Read: Caisse returns 7.2% for 2023, driven by bonds, equities
In other news, a partnership led by the Canada Pension Plan Investment Board and Global Infrastructure Partners have entered into a definitive agreement to acquire U.S.-based energy company Allete for US$6.2 billion.
In a press release James Bryce, managing director and global head of infrastructure at the CPPIB, said Allete is at the forefront of the clean energy transition. “Together with GIP, we look forward to bringing our sector expertise and long-term capital to support Allete’s strong management team as they continue to deliver safe, reliable, affordable energy services to their customers.”
Read: CPPIB reports $79BN exposure to green and transition assets
The CPPIB is also investing US$450 million in Ontic, a U.K.-based aerospace technology manufacturer and repair service. The transaction is expected to be completed by the end of the year, according to a press release.
“[Ontic] is uniquely positioned to address the strong need for products and services necessary to extend longevity of existing aircraft fleets,” said Hafiz Lalani, managing director and global head of direct private equity at the CPPIB, in the release.
Read: CPPIB returns 3.4% in Q3 2024, driven by global equity, fixed income assets