Bombardier Inc. announced today that it has successfully closed a $1.1 billion US unsecured credit facility through a syndicate of banks. The maturity date for this facility is July 10, 2007. The $1.0 billion target amount was increased as a result of oversubscription.
A syndicate of sixteen financial institutions is providing this facility with National Bank Financial and Citigroup Global Markets Inc. acting as lead arrangers and joint bookrunners. This facility will replace Bombardier's existing North American credit facility and provide Bombardier with maximum flexibility in issuing letters of credit and letters of guarantee. The new credit facility contains typical covenants such as the maintenance of certain liquidity and fixed charge coverage ratios as well as a leverage ratio similar to the debt-to-equity ratio maintenance covenant contained in Bombardier's existing credit facility. The covenants also include customary limitations for facilities of similar nature.
"As expected, this successful transaction builds on the Corporation’s healthy liquidity position and demonstrates the banking syndicates’ continued confidence in our business plan and our recovery," said François Lemarchand, Bombardier’s Senior Vice President and Treasurer.
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, 2005 were $15.8 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.
John Paul Macdonald
Senior Vice President, Public Affairs