Bombardier Successfully Closes $750M Senior Notes Due 2030

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Strategic Financial Move: Bombardier’s Senior Notes Issuance

Bombardier Inc. has completed its offering of $750 million aggregate principal amount of Senior Notes due 2030, marking a strategic financial move for the company. The New Notes, carrying an annual coupon of 8.750%, mature on November 15, 2030, and were sold at 100.000% of par.

Utilizing Proceeds for Debt Management

The company plans to utilize the proceeds from the New Notes offering, coupled with available cash, for several key purposes:

1. Redemption of Existing Senior Notes:

Bombardier intends to fund the redemption of all its outstanding 7.50% Senior Notes due 2025.

2. Financing Purchase Offers:

The funds will also be allocated to finance offers to purchase up to $360 million aggregate purchase amount of its outstanding 7.125% Senior Notes due 2026 and 7.875% Senior Notes due 2027. Additionally, it may be used for the repayment of other indebtedness.

3. Interest Payments and Expenses:

A portion of the funds will be directed towards the payment of accrued interest and related fees and expenses.

Legal Considerations and Exemptions

It’s crucial to note that the New Notes mentioned in the announcement have not been registered under the United States Securities Act of 1933. The offering was made in compliance with Rule 144A under the U.S. Securities Act and outside the United States in reliance on Regulation S under the same act. In Canada, the New Notes were offered and sold on a private placement basis to “accredited investors” pursuant to certain prospectus exemptions.

Forward-Looking Statements

As with any financial move, there are inherent risks and uncertainties. The company acknowledges that forward-looking statements in this announcement are subject to various known and unknown risks and uncertainties. These statements are based on current expectations and may differ from actual results due to factors beyond the company’s control.

This strategic move by Bombardier reflects a commitment to effective debt management and financial restructuring, positioning the company for future stability and growth.

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