Bombardier Announces Launch of its New Issuance of Senior Notes due 2032

Rhea-AI Summary

Bombardier has announced a new issuance of US$500 million Senior Notes due 2032. The proceeds will be used to repay and retire outstanding debts, including the redemption of US$240 million 7.125% Senior Notes due 2026 and US$300 million 7.875% Senior Notes due 2027. The offering is subject to market conditions and there are no guarantees that it will be completed. The new Senior Notes will not be registered under the U.S. Securities Act and will be sold only to qualified institutional buyers and accredited investors.

Positive

• Issuance of US$500 million Senior Notes due 2032.
• Proceeds will be used to repay and retire existing debts, potentially reducing interest expenses.
• Aims to redeem US$240 million of 7.125% Senior Notes due 2026 and US$300 million of 7.875% Senior Notes due 2027.

Negative

• The offering is subject to market and other conditions, creating uncertainty around its completion.
• There is a risk that the new issuance may not be successfully completed.
• The new Senior Notes will not be registered under the U.S. Securities Act, potentially limiting investor interest.

MONTREAL, May 21, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has launched an offering of US$500 million aggregate principal amount of new Senior Notes due 2032 (the “New Notes”).

Bombardier intends to use the proceeds of the offering of the New Notes, together with cash on hand, (i) to fund the repayment and/or retirement of outstanding indebtedness, including the redemption of US$240 million aggregate principal amount of its outstanding 7.125% Senior Notes due 2026 (the “2026 Notes”, and such redemption, the “Conditional 2026 Notes Redemption”) and the redemption of US$300 million aggregate principal amount of its outstanding 7.875% Senior Notes due 2027 (the “2027 Notes”, and such redemption, the “Conditional 2027 Notes Redemption”), and (ii) to pay accrued interest and related fees and expenses. As of the date hereof, there is US$504 million aggregate principal amount outstanding of the 2026 Notes and US$1,433 million aggregate principal amount outstanding of the 2027 Notes.

Consummation of the offering of the New Notes, the Conditional 2026 Notes Redemption and the Conditional 2027 Notes Redemption are subject to market and other conditions, and there can be no assurance that Bombardier will be able to successfully complete these transactions on the terms described above, or at all. The Conditional 2026 Notes Redemption and the Conditional 2027 Notes Redemption are expected to be subject to certain conditions, including the completion of the offering of the New Notes.

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 may be 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 will be made on a basis which is exempt from the prospectus requirements of such securities laws. The New Notes will be offered and sold in Canada on a private placement basis only to “accredited investors” pursuant to certain prospectus exemptions.

This announcement does not constitute an offer to purchase or the solicitation of an offer to sell the New Notes, the 2026 Notes or the 2027 Notes. This announcement does not constitute a redemption notice in respect of any 2026 Notes, 2027 Notes or any other notes. Any redemption of the 2026 Notes, the 2027 Notes or any other notes will be made pursuant to a notice of redemption under the indentures governing such notes.

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 purpose of Bombardier's new Senior Notes issuance due 2032?

The proceeds will be used to fund the repayment and retirement of outstanding debts and to pay accrued interest and related expenses.

How much is Bombardier aiming to raise with the new Senior Notes issuance?

Bombardier is aiming to raise US$500 million.

What will the new issuance proceeds be used for?

The proceeds will be used to redeem US$240 million of 7.125% Senior Notes due 2026 and US$300 million of 7.875% Senior Notes due 2027.

What conditions are attached to the completion of the new Senior Notes offering?

The offering is subject to market and other conditions, and there is no assurance of its completion.

Will Bombardier's new Senior Notes be registered under the U.S. Securities Act?

No, the new Senior Notes will not be registered under the U.S. Securities Act and will only be sold to qualified institutional buyers and accredited investors.