PSP Capital Completes Issuance of $1.25B of Notes

PSP Capital Inc. (“PSP Capital”), a wholly owned subsidiary of the Public Sector Pension Investment Board (“PSP Investments”), issued $350 million principal amount of Floating Rate Notes, Series 3, due February 16, 2015, and $900 million principal amount of 2.26 per cent Notes, Series 4, due February 16, 2017 (the “Notes”). The Notes are unconditionally and irrevocably guaranteed by PSP Investments as to the payment of the principal and interest.

PSP Investments manages the net contributions received after April 1, 2000, from the pension plans of the federal Public Service, Canadian Forces, Royal Canadian Mounted Police and net contributions received after March 1, 2007, from the pension plan of the Reserve Force. PSP Capital was set up in response to PSP Investments' objective to seek financing alternatives in order to optimize its leverage in its private market portfolios.

Net proceeds from the issuance of Notes will be used to finance additional investment activities of PSP Investments and/or to repay existing short term indebtedness under PSP Capital's commercial paper program.

A syndicate of dealers co-led by TD Securities and RBC Dominion Securities and also comprising BMO Nesbitt Burns, CIBC World Markets, Scotia Capital, Casgrain & Company, Desjardins Securities and Laurentian Bank Securities acted as agents for the offering, which was completed on a private placement basis.

Norton Rose Canada LLP acted as legal counsel to PSP Capital and PSP Investments with a team that included Solomon Sananes, Karine Fadous and Peter Riddell.

Fasken Martineau DuMoulin LLP acted as legal counsel to the syndicate of dealers with a team that included Gilles Leclerc, Jean-Pierre Chamberland and Constantinos Ragas.

Lawyer(s)

Gilles Leclerc Solomon Sananes Karine Fadous Constantinos Ragas Jean-Pierre Chamberland