Bombardier Announces Pricing of its New Issuance of Senior Notes

Rhea-AI Summary

Bombardier has successfully priced its offering of Senior Notes, increasing the total amount to US$1,200,000,000 at a 7.125% annual coupon rate, set to close around June 8, 2021. The net proceeds will finance a tender offer for up to US$1,000,000,000 in outstanding Senior Notes due in 2022 and 2023, covering the 5.750% and 6.000% Notes, among others. Completion of these transactions is subject to market conditions. The press release emphasizes that no offers are made for sales or purchases of securities.

Positive

• Successful pricing of Senior Notes raised to US$1,200,000,000.
• Interest rate of 7.125% is attractive compared to market rates.
• Proceeds will be used to refinance existing high-interest debt.

Negative

• Completion of transactions is uncertain and dependent on market conditions.

MONTRÉAL, June 03, 2021 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier” or the “Corporation”) today announced that it has successfully priced its previously announced offering of US$1,000,000,000 aggregate principal amount, which has been upsized to US$1,200,000,000 aggregate principal amount, of new Senior Notes due 2026. The new Senior Notes will carry a coupon of 7.125% per annum and will be sold at 100.000% of par (the “New Notes”). The issuance is expected to close on or about June 8, 2021, subject to customary closing conditions.

The net proceeds of the offering are expected to be used to finance Bombardier’s tender offer (the “Tender Offer”), for up to $1,000,000,000 in aggregate purchase price, of its outstanding (i) 5.750% Senior Notes due 2022 (the “5.750% 2022 Notes”), of which there is US$181,203,000 principal amount outstanding on the date hereof, (ii) 6.000% Senior Notes due 2022 (the “6.000% 2022 Notes”), of which there is US$1,200,000,000 principal amount outstanding on the date hereof, and (iii) 6.125% Senior Notes due 2023, of which there is US$1,023,858,000 principal amount outstanding on the date hereof (the “2023 Notes” and together with the 5.750% 2022 Notes and the 6.000% 2022 Notes, the “Subject Notes”) and to pay related fees and expenses. Bombardier intends to use the remaining net proceeds from the offering of New Notes for general corporate purposes, including the repayment and/or retirement of other outstanding debt.

Consummation of the offering of the New Notes and of the Tender Offer for the Subject Notes is 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.

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 and the Subject 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.

The Tender Offer mentioned herein will be conducted in accordance with the separate Offer to Purchase relating thereto.

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 +514 855 5001 x13228

Mark Masluch Senior Director, Communications Bombardier +514 855 7167

FAQ

What is the amount raised in Bombardier's Senior Notes offering?

Bombardier raised US$1,200,000,000 in its Senior Notes offering.

What is the coupon rate for Bombardier's new Senior Notes?

The new Senior Notes carry a coupon rate of 7.125% per annum.

When is the closing date for Bombardier's Senior Notes offering?

The issuance is expected to close around June 8, 2021.

What will the proceeds from Bombardier's Senior Notes be used for?

The proceeds will finance a tender offer for existing Senior Notes and cover general corporate purposes.

What is the risk associated with Bombardier's Senior Notes offering?

The completion of the offering and tender offer is subject to market conditions, which may introduce risks.