Bombardier Inc. (“Bombardier”) today announced that it has successfully priced its offering of US$750 million aggregate principal amount of new Senior Notes due February 1, 2029. The new Senior Notes will carry a coupon of 7.50% per annum and will be sold at par (the “New Notes”). The issuance of the New Notes is expected to close on or about January 20, 2023, subject to customary closing conditions.
Bombardier intends to use the proceeds of the offering of the New Notes, together with cash on hand, (i) to fund the redemption of all of its outstanding 7.500% Senior Notes due 2024 (the “2024 Notes”), of which there is $396 million aggregate principal amount outstanding on the date hereof, (ii) to finance the offer to purchase (the “2025 Tender Offer”) up to $354 million aggregate principal amount of its outstanding 7.50% Senior Notes due 2025 (the “2025 Notes”), of which there is $1,139 million aggregate principal amount outstanding on the date hereof, and/or for the payment of other indebtedness, and (iii) for the payment of related fees and expenses.
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.
This announcement does not constitute an offer to purchase or the solicitation of an offer to sell the New Notes, the 2024 Notes or the 2025 Notes. This announcement does not constitute a redemption notice in respect of any 2024 Notes or any other notes. Any redemption of the 2024 Notes or any other notes will be made pursuant to a notice of redemption under the indentures governing such notes. Any purchase of the 2025 Notes pursuant to the 2025 Tender Offer will be made pursuant to an offer to purchase.
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
Vice President, Financial Planning and Investor Relations Bombardier
Senior Director, Communications