Bombardier Completes Partial Redemptions for US$338,000,000 of its 7.125% Senior Notes due 2026 and US$450,000,000 of its 7.875% Senior Notes due 2027

Rhea-AI Summary

Bombardier has announced the partial redemption of $338 million of its 7.125% Senior Notes due 2026 and $450 million of its 7.875% Senior Notes due 2027. These redemptions follow the notices of partial redemption issued on May 21, 2024. The redemption process is being conducted through the Depository Trust Company in alignment with its procedures. This transaction does not imply an offer to buy or sell any securities and complies with relevant securities laws.

Positive

• - Reduction in outstanding debt lowering the company's financial liabilities
• - Potential improvement in creditworthiness due to reduced debt burden

Negative

• - Potential cash outflow impacting liquidity in the short term

MONTREAL, June 20, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has redeemed US$338 million principal amount of its outstanding 7.125% Senior Notes due 2026 (the “2026 Notes”) and US$450 million principal amount of its outstanding 7.875% Senior Notes due 2027 (together with the 2026 Notes, the “Redemption Notes”), in each case as set forth in the respective notices of partial redemption issued May 21, 2024.

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 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 Redemption 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 Redemption 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.

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 significance of Bombardier's partial redemption of senior notes in June 2024?

Bombardier's partial redemption of $338M of its 7.125% Senior Notes due 2026 and $450M of its 7.875% Senior Notes due 2027 reduces its outstanding debt, potentially improving its financial stability and creditworthiness.

How much of Bombardier's debt was redeemed in June 2024?

Bombardier redeemed $338M of its 7.125% Senior Notes due 2026 and $450M of its 7.875% Senior Notes due 2027.

What is the impact of Bombardier's partial redemption of its senior notes on its financials?

The partial redemptions help reduce Bombardier's debt burden, which may improve its credit profile but could also affect short-term liquidity.

What are the interest rates of the Bombardier notes redeemed in June 2024?

The redeemed notes had interest rates of 7.125% for the 2026 notes and 7.875% for the 2027 notes.

How does Bombardier's debt redemption affect its stock symbol BDRBF?

The debt redemption could positively impact Bombardier's stock symbol BDRBF by improving the company's financial health and reducing its long-term obligations.