Bombardier Inc. (“Bombardier” or the “Corporation”) announced today that its cash tender offer previously announced on March 22, 2021 (as amended by the Corporation’s press release dated April 5, 2021, the “Tender Offer”) to purchase for cash up to US$1,571,000,000 aggregate purchase price (exclusive of Accrued Interest) (the “Aggregate Maximum Purchase Amount”) of three series of its outstanding senior notes (collectively, “Notes”) due 2021, 2022 and 2023 as identified in the Offer to Purchase (as defined below), expired at the Expiration Date, 11:59 P.M., New York City time, on April 16, 2021. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Offer to Purchase dated March 22, 2021 (as amended by the Corporation’s press release dated April 5, 2021, the “Offer to Purchase”) with respect to the Tender Offer.
On the Early Settlement Date, April 6, 2021, the Company accepted for purchase and purchased, US$955,552,000 aggregate principal amount of the 2021 Notes (93.91%), US$315,754,000 aggregate principal amount of the 2022 Notes (63.15%) and US$225,000,000 aggregate principal amount of 2023 Notes (18.00%). As a result, on the Early Settlement Date, the aggregate total purchase price payable under the Offer to Purchase for Notes validly tendered and not validly withdrawn at or prior to the Early Tender Date and accepted for purchase reached the 2023 Tender Cap with respect to the 2023 Notes and was within US$786,032.24 of reaching the Aggregate Maximum Purchase Amount for all Notes.
After the Early Tender Date, but at or prior to the Expiration Date for the Tender Offer, an additional US$913,000 aggregate principal amount of the 2021 Notes were validly tendered and not validly withdrawn, an additional US$3,043,000 aggregate principal amount of 2022 Notes were validly tendered and not validly withdrawn and an additional US$1,142,000 aggregate principal amount of 2023 Notes were validly tendered and not validly withdrawn.
In accordance with the terms of the Tender Offer as set forth in the Offer to Purchase and as permitted by applicable law, all additional Notes that were validly tendered after the Early Tender Date, but at or prior to the Expiration Date, will be accepted for purchase by Bombardier, upon the terms and conditions contained in the Offer to Purchase, on the Final Settlement Date.
All such Notes that are being accepted for purchase by the Corporation will be settled on the Final Settlement Date in accordance with the terms of the Tender Offer as set forth in the Offer to Purchase. Bombardier expects such Final Settlement Date to be April 20, 2021.
“Bombardier has taken an important step in deleveraging its balance sheet,” said Bart Demosky, Executive Vice President and Chief Financial Officer. “With this tender now complete, and the repayment of our senior secured credit facility announced in February, Bombardier has deployed approximately $2.4 billion of available cash towards debt repayment, including proceeds from the sale of Bombardier Transportation. These actions will play a key role in reducing annual cash interest costs, and represent a critical step towards executing on the strategic plan outlined at our Investor Day this past March.”
This announcement does not constitute an offer to buy or sell or the solicitation of an offer to sell or buy any securities.
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 additional information regarding these risks and uncertainties, and the assumptions underlying the forward‑looking statements, please refer to the Offer to Purchase.
Francis Richer de La Flèche