Bombardier Inc. (“Bombardier” or the “Corporation”) today announced that it has successfully priced its offering of US$750,000,000 aggregate principal amount, of new Senior Notes due 2028. The new Senior Notes will carry a coupon of 6.000% per annum and will be sold at 100.000% of par (the “New Notes”). The issuance is expected to close on or about August 12, 2021, subject to customary closing conditions.
Bombardier intends to use the net proceeds of this offering of New Notes, together with cash on hand, for the repayment and/or retirement of outstanding debt, including to redeem all of its outstanding 6.000% Senior Notes due October 2022, of which there is $514 million aggregate principal amount outstanding on the date hereof, and all of its outstanding 6.125% Senior Notes due 2023, of which there is $534 million aggregate principal amount outstanding on the date hereof, for related fees and expenses and for other general corporate purposes.
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.
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.
Francis Richer de La Flèche