Bombardier Inc. announced today that it has priced a new €1.9 billion issue of Senior Notes. The offering, made principally in Europe and the United States, will consist of a €800 million aggregate principal amount of floating rate senior notes due 2013 based on EUROLIBOR +3.125%, a US$385 million (€300 million) aggregate principal amount of 8% Senior Notes due 2014 and a €800 million aggregate principal amount of 7.25% Senior Notes due 2016.
This offering of Senior Notes is part of a refinancing plan to provide Bombardier with increased financial and operating flexibility. The refinancing plan also contemplates the entering into a new €4.3 billion syndicated letter of credit facility, within a few weeks, to replace existing facilities prior to their maturity. The net proceeds of the offering of the Senior Notes will be used to repurchase all of the outstanding €500 million 6.125% Notes due 2007 issued in Europe by Bombardier Capital Funding LP and a principal amount to be determined of the €500 million 5.75% Notes due 2008 issued in Europe by Bombardier Inc., which will have been duly tendered pursuant to tender offers launched on October 23, 2006. Each tender offer is made upon the terms and subject to the conditions (including the jurisdictional limitations) set out in the Invitation Memorandum dated October 23, 2006 relating thereto. The proceeds of the offering will also be used to retire all of the outstanding US$220 million 7.09% Notes due 2007 issued by Bombardier Capital Inc. and to support the new syndicated letter of credit facility. The aggregate amount of notes repurchased pursuant to the tender offers will be announced on November 14, 2006, being the business day following the expiration date of the offers.
“The purpose of our refinancing initiative is to take advantage of current favourable conditions in the debt capital markets and to extend Bombardier’s debt maturity profile,” said François Lemarchand, Senior Vice President and Treasurer, Bombardier Inc. “This transaction, one of the largest euro denominated corporate issue ever, was significantly oversubscribed which reflects the confidence of the European and U.S. capital markets in the Corporation’s ability to execute its business plan.”
Closing is expected to take place in the next week and will be subject to the execution of customary documentation and satisfaction of typical conditions precedent.
This announcement is not an offer of securities for sale in the United States. The new Senior Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an exemption from registration.
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2006, were $14.7 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com .
Director, Investor Relations