Bombardier Announces Closing of its New Issuance of Senior Notes due 2030

Rhea-AI Summary

Bombardier Inc. (BBD) has closed an offering of US$750 million aggregate principal amount of Senior Notes due 2030. The New Notes carry a coupon of 8.750% per annum and were sold at 100.000% of par. The proceeds will be used to fund the redemption of outstanding Senior Notes due 2025, finance offers to purchase outstanding Senior Notes due 2026 and 2027, and for the repayment of other indebtedness.

MONTRÉAL, Nov. 17, 2023 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US$750 million aggregate principal amount of Senior Notes due 2030 (the “New Notes”). The New Notes carry a coupon of 8.750% per annum, mature on November 15, 2030 and were sold at 100.000% of par.

Bombardier intends to use the proceeds of the offering of the New Notes, together with cash on hand, (i) to fund the redemption of all of its outstanding 7.50% Senior Notes due 2025, (ii) to finance the offers to purchase up to $360 million aggregate purchase amount (exclusive of accrued and unpaid interest) of its outstanding 7.125% Senior Notes due 2026 and 7.875% Senior Notes due 2027, and/or for the repayment of other indebtedness, and (iii) for the payment of accrued interest and related fees and expenses.

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 +514 855 7167

FAQ

What is the coupon rate for the New Notes?

The coupon rate for the New Notes is 8.750% per annum.

How will the proceeds from the offering be used?

The proceeds will be used to fund the redemption of outstanding Senior Notes due 2025, finance offers to purchase outstanding Senior Notes due 2026 and 2027, and for the repayment of other indebtedness.

In which jurisdictions were the New Notes offered and sold?

The New Notes were offered and sold in the United States to qualified institutional buyers and outside the United States in reliance on Regulation S under the U.S. Securities Act. In Canada, the New Notes were offered and sold on a private placement basis only to accredited investors.

Are the New Notes registered under the United States Securities Act of 1933?

The New Notes 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.