Bombardier Announces Dividend Rate Applicable to its Series 3 Preferred Shares

Rhea-AI Summary

Bombardier announced that its Series 3 Preferred Shares will offer an annual dividend rate of 4.588% for the next five years starting August 1, 2022. The dividend is based on a fixed rate derived from a Government of Canada bond yield. Shareholders wishing to convert their Series 2 or Series 3 Preferred Shares must submit their requests by 5:00 p.m. on July 18, 2022. The announcement reinforces Bombardier's commitment to shareholder returns amid continued operations in the business jet sector.

Positive

• Annual dividend rate set at 4.588% for Series 3 Preferred Shares.
• Commitment to pay dividends for five years enhances shareholder confidence.

Negative

• Shareholders must act quickly to convert shares, adding pressure and potential confusion.

MONTRÉAL, July 12, 2022 (GLOBE NEWSWIRE) -- Bombardier Inc. (TSX: BBD.B) (TSX: BBD.PR.B) (TSX:BBD.PR.D) today announced that as of August 1, 2022, its Series 3 Preferred Shares will pay, on a quarterly basis, as and when declared by the Board of Directors of Bombardier Inc., cash dividends for the following five years that will be based on a fixed rate equal to the product of (a) the average of the yields to maturity that would be carried by a Government of Canada bond with a five-year maturity, designated on July 11, 2022 by each of National Bank Financial Inc. and TD Securities Inc., namely 3.164%, multiplied by (b) 145%, which multiplier was previously announced on June 17, 2022.

Accordingly, the annual dividend rate applicable to the Series 3 Preferred Shares for the period of five years beginning on August 1, 2022 will be 4.588%.

As a reminder, any registered shareholder who wishes to convert his or her Series 2 and/or Series 3 Preferred Shares must complete and sign the conversion panel contained on the back of the Series 2 or Series 3 Preferred Share certificate, as the case may be, and deliver it to Computershare Investor Services Inc., and any registered shareholder who wishes to revoke or amend his or her previously delivered conversion instructions must notify Computershare Investor Services Inc., in each case at the latest by 5:00 p.m. (Montréal time) on July 18, 2022. Likewise, shareholders who are beneficial owners and who wish to exercise their right of conversion or, alternatively, revoke or amend their instructions should communicate as soon as possible with their broker or other nominee and follow their instructions. In that case, it is important that they follow such instructions and act in the timeframe advised so as to provide enough time to their broker or other nominee to meet the July 18, 2022 deadline.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to, statements relating to future conversions and quantum and payment of dividends with respect the Series 2 Preferred Shares and the Series 3 Preferred Shares. 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.

About Bombardier

Bombardier is a global leader in aviation, focused on designing, manufacturing and servicing the world's most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. Bombardier aircraft are also trusted around the world in special-mission roles.

Headquartered in Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China and an Australian facility opening in 2022.

For corporate news and information, including Bombardier’s Environmental, Social and Governance report, visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on Twitter @Bombardier.

Bombardier, Challenger and Global are trademarks of Bombardier Inc. or its subsidiaries.

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 dividend amount for Bombardier's Series 3 Preferred Shares?

The annual dividend amount is 4.588%.

When will Bombardier start paying dividends on Series 3 Preferred Shares?

Dividends will start on August 1, 2022.

How long will the dividend payments last for Bombardier's Series 3 Preferred Shares?

The dividends are set for a five-year period.

What is the deadline for converting Bombardier's Series 2 and Series 3 Preferred Shares?

The deadline for conversion requests is 5:00 p.m. on July 18, 2022.

What factors influence the dividend rate for Bombardier's Preferred Shares?

The dividend rate is based on the yield of a Government of Canada bond.