Bombardier Announces Closing of its New Issuance of Senior Notes
Bombardier has successfully closed an offering of US$1.2 billion in Senior Notes due on June 15, 2026, with a coupon rate of 7.125%. The proceeds will finance a tender offer for outstanding Senior Notes due in 2022 and 2023 and cover related fees. Additionally, remaining funds may be used for general corporate purposes and to pay down other debt. Notably, these notes are not registered under U.S. securities laws and were sold primarily to institutional buyers.
- Successfully closed US$1.2 billion Senior Notes offering.
- Coupon rate of 7.125% indicates strong investor interest.
- High coupon rate may increase future debt servicing costs.
- The offering could signal potential cash flow issues if used primarily to refinance.
MONTREAL, June 08, 2021 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US
Bombardier intends to use the net proceeds of this offering of Notes to finance its previously announced tender offer (the “Tender Offer”) for (i)
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 and the Subject 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.
The Tender Offer mentioned herein is being conducted in accordance with the separate Offer to Purchase relating thereto.
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 x13228 | Mark Masluch Senior Director, Communications Bombardier +514 855 7167 |
FAQ
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