Bombardier Announces Expiration of Early Tender Date and Amendment for its Cash Tender Offer for Certain Outstanding Senior Notes

Rhea-AI Summary

On June 17, 2021, Bombardier announced amendments to its cash tender offer, originally declared on June 3, 2021, to purchase up to $1 billion of its outstanding senior notes. The 2023 Tender Cap was increased to $520,558,062.50, allowing Bombardier to buy up to that amount on the Early Settlement Date, expected to be June 18, 2021. As of the Early Tender Date, a total of $210,183,000 in 6% Senior Notes due 2022, $88,364,000 in 5.75% Senior Notes due 2022, and $489,937,000 in 6.125% Senior Notes due 2023 were tendered. All validly tendered notes will be accepted for purchase.

Positive

• Increased 2023 Tender Cap to $520,558,062.50, allowing higher purchases.
• Strong participation with $210,183,000 (17.52%) in 6% Senior Notes due 2022 and $489,937,000 (47.85%) in 6.125% Senior Notes due 2023 tendered.

Negative

• Only 47.85% of 2023 Notes were tendered, indicating potential lack of investor interest.

MONTREAL, June 17, 2021 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier” or the “Corporation”) today announced certain matters with respect to its cash tender offer previously announced on June 3 2021 (the “Tender Offer”) to purchase for cash up to US$1,000,000,000 aggregate purchase price (exclusive of Accrued Interest) (as such aggregate purchase price may be increased or decreased by the Corporation, the “Aggregate Maximum Purchase Amount”) of three series of its outstanding senior notes (collectively, the “Notes”) due 2022 and 2023 as identified in the Offer to Purchase (as defined below), subject to the Acceptance Priority Levels and the 2023 Tender Cap (as such 2023 Tender Cap may be increased or decreased by the Corporation, including the increase described herein), as applicable, and possible proration, as set forth in the Offer to Purchase containing the terms and conditions of the Tender Offer, subject to amendment with respect to the 2023 Tender Cap as announced hereby. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Offer to Purchase dated June 3, 2021 (as amended hereby, the “Offer to Purchase”) with respect to the Tender Offer.

The Tender Offer and the Offer to Purchase are hereby amended as follows:

• The 2023 Tender Cap is amended to increase it to US$520,558,062.50 so that Bombardier may purchase on the Early Settlement Date up to US$520,558,062.50 in aggregate purchase price (exclusive of Accrued Interest) of the 2023 Notes.

As of the Early Tender Date for the Tender Offer, US$210,183,000.00 aggregate principal amount of the 6.000% Senior Notes due 2022 (17.52%) were validly tendered and not validly withdrawn, US$88,364,000.00 aggregate principal amount of the 5.750% Senior Notes due 2022 (48.77%) were validly tendered and not validly withdrawn and US$489,937,000.00 aggregate principal amount of the 6.125% Senior Notes due 2023 (47.85%) were validly tendered and not validly withdrawn.

As a result of the amendment set forth herein, all Notes that were validly tendered and not validly withdrawn at or before the Early Tender Date will be accepted for purchase by Bombardier on the Early Settlement Date. All such Notes that have been accepted will be settled on the Early Settlement Date in accordance with the terms of the Tender Offer as set forth in the Offer to Purchase, as amended hereby. Bombardier expects such Early Settlement Date to be June 18, 2021.

On the Early Settlement Date, the aggregate total purchase price payable under the Offer to Purchase (as amended hereby) for Notes validly tendered and not validly withdrawn at or prior to the Early Tender Date and accepted for purchase will have reached the 2023 Tender Cap (as amended hereby) with respect to the 2023 Notes.

As a result of the amount of 2023 Notes accepted for purchase on the Early Settlement Date, no 2023 Notes tendered after the Early Tender Date will under the terms of the Offer to Purchase (as amended hereby) be accepted for payment unless, in the Corporation’s sole and absolute discretion, the terms of the Tender Offer are further amended or waived by the Corporation to permit further purchases of 2023 Notes. There can be no assurance that the Corporation will further amend or waive any terms of the Tender Offer to accept any 2023 Notes tendered after the Early Tender Date or amend the Tender Offer in any other respect.

Except as expressly set forth herein, the terms and conditions with respect to the Tender Offer are as set forth in the Offer to Purchase, subject to the Corporation’s right to further waive, amend or terminate any provisions of the Tender Offer, in the Corporation’s sole and absolute discretion.

The obligation of the Corporation to accept for purchase, and to pay for, Notes validly tendered pursuant to the Tender Offer is subject to, and conditioned upon, the satisfaction or waiver of certain conditions as set forth in the Offer to Purchase, in the sole and absolute discretion of the Corporation.

None of Bombardier, the trustees for the Notes, the agents under the respective indentures for the Notes, the dealer managers, the information and tender agent, any of their respective subsidiaries or affiliates or any of its or their respective directors, officers, employees or representatives makes any recommendation to Holders as to whether or not to tender all or any portion of their Notes, and none of the foregoing has authorized any person to make any such recommendation. Holders must decide whether to tender Notes, and if tendering, the amount of Notes to tender.

All of the Notes are held in book-entry form. If you hold Notes through a broker, dealer, commercial bank, trust company or other nominee, you must contact such broker, dealer, commercial bank, trust company or other nominee if you wish to tender Notes pursuant to the Tender Offer. You should check with such broker, dealer, commercial bank, trust company or other nominee to determine whether they will charge you a fee for tendering Notes on your behalf. You should also confirm with the broker, dealer, bank, trust company or other nominee any deadlines by which you must provide your tender instructions, because the relevant deadline set by such nominee may be earlier than the deadlines set forth in the Offer to Purchase.

Bombardier has retained J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. to serve as dealer managers for the Tender Offer. Bombardier has retained Global Bondholder Services Corporation to act as the information and tender agent in respect of the Tender Offer.

For additional information regarding the terms of the Tender Offer, please contact J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. at their respective telephone numbers set forth on the back cover page of the Offer to Purchase. Copies of the Offer to Purchase may be obtained at www.gbsc-usa.com/bombardier/ or by contacting Global Bondholder Services Corporation at (866) 807 2200 or by email at contact@gbsc-usa.com.

This notice does not constitute or form part of any offer or invitation to purchase, or any solicitation of any offer to sell, the Notes or any other securities in the United States or any other jurisdiction, and neither this notice nor any part of it, nor the fact of its release, shall form the basis of, or be relied on or in connection with, any contract therefor. The Tender Offer is made only by and pursuant to the terms and conditions of the Offer to Purchase and the information in this notice is qualified by reference to the Offer to Purchase. None of the Corporation, the dealer managers or the information and tender agent makes any recommendations as to whether Holders should tender their Notes pursuant to the Tender Offer.

This announcement does not constitute an offer to buy or the solicitation of an offer to sell any securities in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful. In those jurisdictions where the securities, blue sky or other laws require the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made by the dealer managers or one or more registered brokers or dealers licensed under the laws of such jurisdiction.

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 additional information regarding these risks and uncertainties, and the assumptions underlying the forward‑looking statements, please refer to the Offer to Purchase.

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

What is Bombardier's recent cash tender offer (BDRBF)?

Bombardier announced a cash tender offer to purchase up to $1 billion of its senior notes, specifically amending it on June 17, 2021.

What is the updated 2023 Tender Cap for Bombardier's tender offer (BDRBF)?

The 2023 Tender Cap has been increased to $520,558,062.50, allowing Bombardier to purchase more of its outstanding notes.

What are the amounts tendered in Bombardier's cash tender offer (BDRBF)?

As of the Early Tender Date, $210,183,000 in 6% Senior Notes due 2022, $88,364,000 in 5.75% Senior Notes due 2022, and $489,937,000 in 6.125% Senior Notes due 2023 were tendered.

When is the Early Settlement Date for Bombardier's tender offer (BDRBF)?

The Early Settlement Date is expected to be June 18, 2021.