Bombardier Inc. today announced that it has successfully priced its offering of US$750 million aggregate principal amount of new Senior Notes due February 1, 2029.
The new Senior Notes will carry a coupon of 7.50% per annum and will be sold at par (the “New Notes”).
The issuance of the New Notes is expected to close on or about January 20, 2023, subject to customary closing conditions.
Bombardier intends to use the proceeds of the offering of the New Notes, together with cash on hand, (i) to fund the redemption of all of its outstanding 7.500% Senior Notes due 2024 (the “2024 Notes”), of which there is $396 million aggregate principal amount outstanding on the date hereof, (ii) to finance the offer to purchase (the “2025 Tender Offer”) up to $354 million aggregate principal amount of its outstanding 7.50% Senior Notes due 2025 (the “2025 Notes”), of which there is $1,139 million aggregate principal amount outstanding on the date hereof, and/or for the payment of other indebtedness, and (iii) for the payment of related fees and expenses.