NOT FOR DISTRIBUTION TO ANY U.S. PERSON OR ITALIAN PERSON OR TO ANY PERSON OR ADDRESS IN THE UNITED STATES OR THE REPUBLIC OF ITALY
Bombardier Inc. and Bombardier Capital Funding LP announced today that they have launched tender offers for any and 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. The minimum target amount of the tender offers is €500 million with the exact aggregate repurchase amount to be announced on the business day following the expiration date of the tender offers, being November 13, 2006. Settlement is expected on November 17, 2006 (unless the tender offers are extended or terminated). Details on the terms, conditions and restrictions relating to the tender offers are contained in the Invitation Memorandum dated October 23, 2006. The tender offers are not open to U.S. persons or persons located or resident in the United States or Italy.
The purpose of the tender offers is to take advantage of current favourable conditions in the debt capital markets and to extend the Bombardier's debt maturity profile by refinancing the 2007 Notes and the 2008 Notes with longer maturity securities. The tender offers are conditional upon completion of and will be funded with a portion of the proceeds of a proposed new issue of notes by Bombardier Inc., which is expected to be launched in the near future. Bombardier Inc. expects to complete the issue of notes prior to the settlement of the tender offers, subject to market conditions. The new issue will not be registered under the securities laws of any jurisdiction and cannot be offered or sold in any jurisdiction without registration or an applicable exemption for registration requirements.
Deutsche Bank is acting as sole Dealer Manager in connection with the tender offers.
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.
Deutsche Bank AG London Branch
Liability Management Group
+44 20 7545 8011