Bombardier Announces Conditional Notice of Redemption for All of its 7.500% Senior Notes due 2024

Rhea-AI Summary

Bombardier announced a conditional notice of redemption for all outstanding 7.500% Senior Notes due 2024. The redemption date is set for February 16, 2023, at a price of 101.875% of the principal amount, plus accrued interest. This redemption is contingent on Bombardier completing a debt securities offering of at least US$500 million before the Redemption Date, although they may delay or waive this condition. Holders of the Notes will receive the payment through the Depository Trust Company on the specified date. This announcement does not constitute an offer to sell or buy securities.

Positive

• Conditional redemption of high-interest notes may improve future cash flow.
• Potential to refinance debt with lower interest rates.

Negative

• The redemption is contingent on completing a significant new debt offering of at least US$500 million, presenting financial risk.
• Interest payments increase with conditions tied to new debt issuance.

MONTRÉAL, Jan. 17, 2023 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has issued a conditional notice of redemption for all of its outstanding 7.500% Senior Notes due 2024 (the “Notes”). As set forth in the conditional notice of redemption issued today in respect of the Notes, the redemption date is February 16, 2023 (the “Redemption Date”), and the redemption price is 101.875% of the principal amount redeemed, plus accrued and unpaid interest. The redemption of the Notes is subject to and conditioned upon Bombardier completing a new offering of debt securities in the aggregate principal amount of not less than US$500 million before the Redemption Date; however, Bombardier may delay or waive this condition in its sole and absolute discretion. 

On January 17, 2023, a copy of the conditional notice of redemption with respect to the Notes was issued to record holders. Payment of the redemption price and surrender of the Notes for redemption will be made through the facilities of the Depository Trust Company in accordance with the applicable procedures of the Depository Trust Company on February 16, 2023. The name and address of the paying agent are as follows: Deutsche Bank Trust Company Americas, c/o Deutsche Bank Services Americas, 5022 Gate Parkway, Jacksonville, Florida 32256, Attention: Corporate Team/Bombardier Inc., Tel: 1-800-735-7777.

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 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 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 may only be made on a basis which is exempt from the prospectus requirements of such securities laws.

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

What is the redemption price for Bombardier's Senior Notes due 2024?

The redemption price for Bombardier's Senior Notes due 2024 is 101.875% of the principal amount, plus accrued interest.

When is the redemption date for Bombardier's 7.500% Senior Notes?

The redemption date for Bombardier's 7.500% Senior Notes is February 16, 2023.

What condition must Bombardier meet to redeem its Senior Notes?

Bombardier must complete a new offering of debt securities totaling at least US$500 million before the Redemption Date.

How will holders of the Senior Notes receive their payment?

Holders of the Senior Notes will receive their payment through the facilities of the Depository Trust Company.

What risks are associated with Bombardier's conditional redemption announcement?

The risks include the uncertainty of successfully completing the new debt offering required for the redemption.