Bombardier announces today that Bombardier Transportation signed a €3.75 billion (approximately $5.4 billion US) Letter of Credit Facility agreement on December 17, 2008 with a syndicate of first quality international financial institutions. The facility is set up in Europe for the sole benefit of Bombardier Transportation and matures in 2013. Simultaneously, Bombardier amended its existing syndicated Letter of Credit Facility, which matures in December 2011, by reducing the facility amount to $840 million US (from €4.3 billion). This amended facility is now subscribed by a core group of preferred North American banks and will be dedicated to supporting Bombardier Aerospace’s operations and the general needs of the Corporation.
Bombardier attained its objectives of securing availability of letters of credit for an extended term in Europe, preserving its letters of credit issuance capacity and releasing a portion of the existing cash collateral for its general corporate purposes (approximately €275 million), while at the same time optimizing the alignment of its banking facilities with the activities of its two industrial groups.
“In these difficult economic times, Bombardier is pleased with this clear demonstration of bank support for its business plan,” said François Lemarchand, Senior Vice President and Treasurer.
BNP Paribas, Calyon, Commerzbank, Deutsche Bank and J.P. Morgan, have jointly arranged the new Bombardier Transportation facility as Mandated Lead Arrangers and Joint Bookrunners. Over the next year, Bombardier will work primarily with its core North American banks to address the renewal of the amended facility and cater to the needs of Bombardier Aerospace and the Corporation in the future.
A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2008, were $17.5 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com.
Senior Director, Investor Relations