Bombardier Announces Launch of its New Issuance of Senior Notes due 2029

Rhea-AI Summary

Bombardier has announced a US$500 million offering of new Senior Notes due 2029. The proceeds will be used for the redemption of all outstanding 7.500% Senior Notes due 2024, approximately $396 million of which remain, and to finance the purchase of up to $104 million of 7.50% Senior Notes due 2025. The success of these transactions hinges on market conditions, and there is no guarantee they will be completed as planned.

These notes will not be publicly offered in Canada and will only be sold to qualified institutional buyers in the U.S. Please note, this announcement does not constitute an offer to buy or sell any securities.

Positive

• Offering of US$500 million Senior Notes could improve liquidity.
• Redemption of 2024 Notes could reduce interest expenses.

Negative

• Successful completion of offerings is uncertain and subject to market conditions.
• Existing 2025 Notes worth $1,139 million remain outstanding, indicating ongoing debt levels.

MONTRÉAL, Jan. 17, 2023 (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 2029 (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 redemption (the “2024 Notes Redemption”) of all of its outstanding 7.500% Senior Notes due 2024 (the “2024 Notes”), of which there is $396 million aggregate principal amount outstanding on the date hereof, (ii) to finance the offer to purchase (the “2025 Tender Offer”) up to $104 million aggregate principal amount of its outstanding 7.50% Senior Notes due 2025 (the “2025 Notes”), of which there is $1,139 million aggregate principal amount outstanding on the date hereof, and (iii) for the payment of related fees and expenses.

Consummation of the offering of the New Notes, the redemption of the 2024 Notes and the 2025 Tender Offer 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 redemption of the 2024 Notes and the 2025 Tender Offer are subject to certain conditions, including the completion of the offering of the New Notes prior to February 16, 2023, as it relates to the 2024 Notes Redemption, and prior to February 1, 2023, as it relates to the 2025 Tender Offer.

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 2024 Notes or the 2025 Notes. This announcement does not constitute a redemption notice in respect of any 2024 Notes or any other notes. Any redemption of the 2024 Notes or any other notes will be made pursuant to a notice of redemption under the indentures governing such notes.  Any purchase of the 2025 Notes pursuant to the 2025 Tender Offer will be made pursuant to an offer to purchase.

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 Bombardier's latest offering regarding Senior Notes?

Bombardier announced a US$500 million offering of new Senior Notes due 2029 to fund the redemption of existing higher-interest notes.

What will the proceeds of the new Senior Notes be used for?

The proceeds will be used to redeem the 2024 Senior Notes and finance the purchase of 2025 Senior Notes.

What is the status of the 2024 and 2025 Senior Notes?

There is approximately $396 million outstanding for the 2024 Notes and $1,139 million for the 2025 Notes.

Are the new notes registered with US securities law?

No, the new notes have not been registered under the US Securities Act and can only be offered to qualified institutional buyers.

When is the completion date for the offering of new Senior Notes?

The offering and related redemptions must be completed prior to February 16, 2023, and February 1, 2023, respectively.