Bombardier Announces Expiration of its Cash Tender Offer for Certain Outstanding Senior Notes

Rhea-AI Summary

Bombardier has concluded its cash tender offer, expiring on February 13, 2023, for up to $354 million of its outstanding 7.50% Senior Notes due 2025. The total validly tendered amounts to $264 million, adding to the previously tendered $258 million, totaling approximately 22.71% of the Notes outstanding. Following the offer, about $880 million in Notes will remain. All tendered Notes will be accepted for purchase, with settlement expected on February 15, 2023. The announcement reiterates that this does not constitute a buying or selling solicitation, highlighting potential risks associated with forward-looking statements.

Positive

• Total validly tendered Notes amounts to $264 million, indicating strong interest.
• Approximately 22.71% of outstanding Notes accepted under the tender offer.

Negative

• $880 million in Notes will remain outstanding, indicating a significant debt load.
• The offer only covered a fraction (22.71%) of the total outstanding Notes.

MONTRÉAL, Feb. 14, 2023 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier” or the “Corporation”) announced today that its cash tender offer previously announced on January 17, 2023 (the “Tender Offer”) to purchase for cash up to $354,000,000 aggregate principal amount (exclusive of Accrued Interest, and as such aggregate principal amount may be increased or decreased by the Corporation, the “Aggregate Maximum Principal Amount”) of its outstanding 7.50% Senior Notes due 2025 (the “Notes”), expired at the Expiration Date, 11:59 P.M., New York City time, on February 13, 2023. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Offer to Purchase dated January 17, 2023 (as amended by the Corporation’s press release titled “Bombardier Increases the Maximum Amount Sought Under its Cash Tender Offer Previously Announced Today” dated January 17, 2023, the “Offer to Purchase”) with respect to the Tender Offer.

The aggregate principal amount of Notes validly tendered and not validly withdrawn after the Early Tender Date and at or prior to the Expiration Date amounts to US$264,000 (the “Additional Tendered Notes”), which, together with the US$258,435,000 aggregate principal amount of Notes that was previously tendered under the Tender Offer and purchased by Bombardier on February 1, 2023, represents, in the aggregate, approximately 22.71% of the aggregate principal amount of the Notes outstanding prior to the Tender Offer. Approximately US$880,301,000 aggregate principal amount of Notes will remain outstanding upon completion of the Tender Offer.

In accordance with the terms of the Tender Offer as set forth in the Offer to Purchase and as permitted by applicable law, all Additional Tendered Notes will be accepted for purchase by the Corporation, upon the terms and conditions contained in the Offer to Purchase, on the Final Settlement Date.

All such Additional Tendered Notes that are being accepted for purchase by the Corporation will be settled on the Final Settlement Date in accordance with the terms of the Tender Offer as set forth in the Offer to Purchase. Bombardier expects such Final Settlement Date to be February 15, 2023.

This announcement does not constitute an offer to buy or sell or the solicitation of an offer to buy or 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 +1 514 240 9649

Christina Lemyre McCraw Manager, Communications Bombardier +1 514 497-4928

FAQ

What is Bombardier's cash tender offer amount?

Bombardier's cash tender offer amounts to up to $354 million.

When did Bombardier's cash tender offer expire?

The cash tender offer expired on February 13, 2023.

How much of the Notes were tendered in Bombardier's offer?

A total of $264 million of the Notes were validly tendered.

What percentage of the Notes did Bombardier's tender offer cover?

The tender offer covered approximately 22.71% of the outstanding Notes.

When is the final settlement date for the tender offer?

The final settlement date is expected to be February 15, 2023.