Bombardier Announces Closing of its New Issuance of 5.875% Senior Notes due 2035

Rhea-AI Summary

Bombardier (OTC:BDRBF) closed a new US$500 million issuance of 5.875% Senior Notes due January 15, 2035, sold at par.

Bombardier plans to use proceeds and cash on hand to redeem all outstanding 7.50% Senior Notes due 2029 (US$750 million) and pay related interest, fees and expenses.

Positive

• US$500 million new 5.875% Senior Notes due 2035 successfully issued at par
• Proceeds and cash on hand to redeem all US$750 million 7.50% Notes due 2029
• Refinancing shifts debt maturity from 2029 to 2035 on this note issuance
• Coupon on new 2035 notes (5.875%) is lower than 7.50% on 2029 notes

Negative

• None.

News Market Reaction – BDRBF

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MONTREAL, May 15, 2026 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US$500,000,000 aggregate principal amount of Senior Notes due 2035 (the “New Notes”). The New Notes carry a coupon of 5.875% per annum, mature on January 15, 2035 and were sold at par.

Bombardier intends to use the proceeds of the offering of the New Notes, together with cash on hand, (i) to fund the repayment and/or retirement of outstanding indebtedness, including the redemption of all of its outstanding 7.50% Senior Notes due 2029 (the “2029 Notes”), and (ii) to pay accrued interest and related fees and expenses. As of the date hereof, prior to giving effect to this redemption, there is US$750,000,000 aggregate principal amount outstanding of the 2029 Notes.

The redemption date for the 2029 Notes is May 19, 2026, in accordance with the conditional notice of redemption issued on May 4, 2026.

This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.

The securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended, any state securities laws or the laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The securities mentioned herein were offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the U.S. Securities Act and outside the United States in reliance on Regulation S under the U.S. Securities Act. The securities mentioned herein have not been and will not be qualified for distribution to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada was made on a basis which is exempt from the prospectus requirements of such securities laws. The securities were offered and sold in Canada on a private placement basis only to “accredited investors” pursuant to certain prospectus exemptions.

FORWARD-LOOKING STATEMENTS

Certain statements in this announcement are forward-looking statements based on current expectations. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from those set forth in the forward-looking statements.

For Information

Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 954 1715

Mark Masluch Senior Director, Communications Bombardier +1 514 855 7167

FAQ

What did Bombardier (BDRBF) announce on May 15, 2026 about its new senior notes?

Bombardier announced it closed a US$500 million issuance of 5.875% Senior Notes due 2035. According to Bombardier, the notes were sold at par and form part of its broader debt management and refinancing strategy.

What are the key terms of Bombardier (BDRBF) 5.875% Senior Notes due 2035?

The new notes have a 5.875% annual coupon and mature on January 15, 2035. According to Bombardier, the US$500 million Senior Notes were issued at par, targeting qualified institutional buyers and investors under Rule 144A and Regulation S.

How will Bombardier (BDRBF) use the proceeds from the 2035 senior notes offering?

Bombardier plans to use proceeds, plus cash on hand, to repay or retire outstanding debt. According to Bombardier, this includes redeeming all 7.50% Senior Notes due 2029 and covering accrued interest, fees and related expenses.

What is happening to Bombardier (BDRBF) 7.50% Senior Notes due 2029 after the new issue?

Bombardier intends to redeem all outstanding 7.50% Senior Notes due 2029 on May 19, 2026. According to Bombardier, US$750 million principal was outstanding before redemption, funded using the new 2035 notes and existing cash.

Who could buy Bombardier (BDRBF) 5.875% Senior Notes due 2035 in this offering?

The notes were sold privately to qualified institutional buyers in the United States and accredited investors in Canada. According to Bombardier, the securities are unregistered under the U.S. Securities Act and Canadian prospectus rules.

Are Bombardier (BDRBF) 5.875% Senior Notes due 2035 registered for sale to the public?

No, the 2035 Senior Notes were not registered for public distribution in the United States or Canada. According to Bombardier, they were offered via private placements under exemptions from U.S. and Canadian securities registration requirements.