Bombardier Announces Closing of its New Issuance of Senior Notes due 2032
Bombardier announced the successful closing of its US$750 million senior notes offering, maturing on June 1, 2032, with a 7.000% coupon rate. Proceeds will be used to repay or retire outstanding debt, including US$338 million of 7.125% Senior Notes due 2026 and US$450 million of 7.875% Senior Notes due 2027. The redemptions are expected by June 20, 2024. The new notes were sold at par to qualified institutional buyers in the U.S. and accredited investors in Canada.
- Successful issuance of US$750 million senior notes.
- The new notes carry a 7.000% coupon rate, maturing in 2032.
- Proceeds aimed at repaying higher-interest debts.
- Redemption of US$338 million of 7.125% Senior Notes due 2026.
- Redemption of US$450 million of 7.875% Senior Notes due 2027.
- Steps taken to improve long-term debt management.
- High interest rate of 7.000% on new notes.
- US$504 million of 2026 Notes and US$1,433 million of 2027 Notes remain outstanding.
MONTRÉAL, June 05, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US
Bombardier intends to use the proceeds of the offering of the New Notes, together with cash on hand, (i) to fund the repayment and/or retirement of outstanding indebtedness, including the redemption of US
The redemptions are expected to be completed on June 20, 2024 in accordance with the respective notices of partial redemption that Bombardier issued on May 21, 2024.
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 +1 514 240 9649 | Mark Masluch Senior Director, Communications Bombardier +1 514 855 7167 |
FAQ
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