Bombardier Announces Closing of its New Issuance of Senior Notes

Rhea-AI Summary

Bombardier announced the successful closure of a $750 million Senior Notes offering, maturing on February 15, 2028 with a 6% interest rate. The proceeds will be utilized for debt repayment, including the redemption of existing Senior Notes due in 2022 and 2023, which total $1.048 billion. This strategic move aims to enhance the company's financial position by addressing upcoming debt maturities and related expenses.

Positive

• Successfully closed a $750 million offering of Senior Notes.
• Proceeds will facilitate the repayment of $1.048 billion in existing debt, strengthening the company's financial position.

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• None.

MONTRÉAL, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US$750,000,000 aggregate principal amount of Senior Notes due 2028 (the “New Notes”). The New Notes carry a coupon of 6.000% per annum, mature on February 15, 2028 and were sold at 100.000% of par.

Bombardier intends to use the net proceeds of this offering of New Notes, together with cash on hand, for the repayment and/or retirement of outstanding debt, including to redeem all of its outstanding 6.000% Senior Notes due October 2022, of which there is $514 million aggregate principal amount outstanding on the date hereof, and all of its outstanding 6.125% Senior Notes due 2023, of which there is $534 million aggregate principal amount outstanding on the date hereof, for related fees and expenses and for other general corporate purposes.

This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.

The New Notes mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended, any state securities laws or the laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The New Notes mentioned herein were offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the U.S. Securities Act and outside the United States in reliance on Regulation S under the U.S. Securities Act. The New Notes mentioned herein have not been and will not be qualified for distribution to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada was made on a basis which is exempt from the prospectus requirements of such securities laws. The New Notes were offered and sold in Canada on a private placement basis only to “accredited investors” pursuant to certain prospectus exemptions.

FORWARD-LOOKING STATEMENTS

Certain statements in this announcement are forward-looking statements based on current expectations. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from those set forth in the forward-looking statements.

For information

Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +514 855 5001 x 13228

Mark Masluch Senior Director, Communications Bombardier +514 855 7167

FAQ

What are the terms of Bombardier's new Senior Notes offering?

The new Senior Notes offering totals $750 million, matures on February 15, 2028, and carries a 6% interest rate.

How will Bombardier use the proceeds from the Senior Notes?

Bombardier plans to use the proceeds for debt repayment, including redeeming $514 million of Senior Notes due in 2022 and $534 million due in 2023.

What is the significance of the new Senior Notes for Bombardier's financial strategy?

The new Senior Notes will help Bombardier manage its debt maturities and improve its overall financial health.

When do the existing Senior Notes that Bombardier intends to redeem mature?

The existing Senior Notes due for redemption mature in October 2022 and 2023.