Bombardier’s Strategic Move with New Senior Notes Issuance

Bombardier's Senior Notes Offering Overview

Bombardier Inc. has made headlines with its recent announcement regarding the pricing of its new issuance of Senior Notes. The company has successfully priced US$500 million in aggregate principal amount of these Senior Notes, which are due on June 15, 2033. Notably, these new Senior Notes will carry a competitive coupon rate of 6.750% per annum and will be sold at par. This financial maneuver is expected to close around the end of May, contingent upon meeting customary closing conditions.

Purpose of the New Senior Notes

The proceeds from this offering are primarily earmarked for the repayment and retirement of some existing debts. Specifically, Bombardier aims to use part of the funds to facilitate the redemption of its outstanding 7.875% Senior Notes, which are due in 2027. Currently, there is an aggregate principal amount of US$683,142,000 still outstanding for these 2027 Notes. This strategic move will help improve the company’s financial standing by addressing current debt obligations with more favorable terms.

Market Conditions and Investor Considerations

As Bombardier moves forward with the issuance of these new notes, the success of the offering will depend on various market conditions. Investors should note that the completion of the offering and the redemption of the 2027 Notes are interlinked and subject to market dynamics. There is always an inherent risk involved, and Bombardier cannot guarantee that these transactions will proceed as planned or under the conditions announced.

Regulatory Compliance and Conditions

It is worth noting that the New Notes have not been registered under the United States Securities Act of 1933 or any comparable state laws. Thus, they cannot be offered or sold in the U.S. unless an exemption applies. The notes will be available to qualified institutional buyers in compliance with Rule 144A. Outside of the U.S., they may also be offered under Regulation S. For Canadian investors, the offering will occur on a private placement basis, exclusively to accredited investors under specific prospectus exemptions.

Forward-Looking Statements

Users of the announcement should be aware that certain statements made by Bombardier are considered forward-looking. These statements are based on current expectations and assumptions, and they entail potential risks and uncertainties that might lead actual outcomes to vary significantly from projections. Investors are encouraged to assess these elements carefully when considering their investment strategies.

Company Contacts for Further Information

For any inquiries regarding this announcement, Bombardier offers direct lines to certain key executives. Francis Richer de La Flèche, the Vice President of Financial Planning and Investor Relations, can be reached at +1 514 240 9649. Additionally, Mark Masluch, the Senior Director of Communications, is available at +1 514 855 7167 for further assistance.

Frequently Asked Questions

What are the key details of Bombardier's new Senior Notes?

Bombardier has priced US$500 million of Senior Notes due June 15, 2033, with a coupon rate of 6.750% per annum.

What is the purpose behind issuing these new notes?

The funds will primarily be used to repay and retire existing debts, including redeeming the 7.875% Senior Notes due 2027.

What risks are associated with the offering?

The completion of the offering depends on market conditions, and Bombardier cannot assure that the transaction will proceed as planned.

How are the new Senior Notes regulated?

The New Notes have not been registered under U.S. securities laws and thus are subject to specific exemptions for sale.

Who can I contact for more information about this announcement?

For inquiries, you can contact Francis Richer de La Flèche at +1 514 240 9649 or Mark Masluch at +1 514 855 7167.

About The Author

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