Bombardier Completes Partial Redemption of $500,000,000 of its 7.50% Senior Notes due 2025, Marking Another Important Deleveraging Milestone

Rhea-AI Summary

Bombardier has successfully redeemed $500 million of its 7.50% Senior Notes due 2025, as part of its ongoing debt reduction strategy. This payment is a key milestone in Bombardier's commitment to strengthening its balance sheet, having already reduced total debt by over $4.5 billion, equating to a 45% decrease since 2020. The company has improved its credit risk profile, with an average long-term debt maturity of 4.7 years and annual interest charges lowered by more than $330 million compared to 2020. Further updates on Bombardier's capital structure will be provided during its virtual Investor Day on March 23, 2023.

Positive

• Redeemed $500 million in Senior Notes, indicating active debt management.
• Total debt reduced by over $4.5 billion, a 45% decrease since 2020.
• Improved credit risk profile with a long-term debt maturity extended to 4.7 years.
• Annual interest charges reduced by over $330 million compared to 2020.

Negative

• None.

MONTREAL, March 17, 2023 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has redeemed $500 million principal amount of its outstanding 7.50% Senior Notes due 2025 (the “Redemption Notes”) as set forth in the notice of partial redemption issued February 14, 2023.

Payment of the redemption price and surrender of the Redemption Notes for redemption are being made through the facilities of the Depository Trust Company in accordance with the applicable procedures of the Depository Trust Company.

"This debt repayment marks another important milestone in our deleveraging journey and demonstrates our continued commitment to strengthening our balance sheet. In the past 2 years, we have reduced total debt by more than $4.5 billion. This represents a 45% reduction in our debt since 2020 and translates into a significantly improved credit risk profile. The average maturity of our long-term debt is now 4.7 years and annual interest charges have been reduced by more than $330 million compared to 2020," said Bart Demosky, Executive Vice President and Chief Financial Officer.

Bombardier will provide further updates on its capital structure and strategic progress during its virtual Investor Day on March 23, 2023.

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 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 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 may only be made on a basis which is exempt from the prospectus requirements of such securities laws.

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. Please refer to the Section entitled “Forward-looking Statements Disclaimer” of the 2022 Financial Report for the period ended December 31, 2022, for further details on forward-looking statements made by Bombardier, which section is incorporated herein by reference. The 2022 Financial Report can be found on SEDAR at www.sedar.com or on Bombardier’s website at bombardier.com/en/investors/financial-reports.

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 recent financial action did Bombardier take regarding its Senior Notes?

Bombardier redeemed $500 million of its 7.50% Senior Notes due 2025.

How much total debt has Bombardier reduced since 2020?

Bombardier has reduced total debt by over $4.5 billion, representing a 45% decrease.

What is the significance of Bombardier's debt reduction strategy?

It strengthens Bombardier's balance sheet and improves its credit risk profile.

When will Bombardier provide further updates on its capital structure?

Bombardier will give updates during its virtual Investor Day on March 23, 2023.

By how much have Bombardier's annual interest charges decreased since 2020?

Annual interest charges have been reduced by more than $330 million compared to 2020.