Bombardier Announces Closing of its New Issuance of Senior Notes due 2031

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Bombardier Inc. successfully closed a $750 million offering of Senior Notes due 2031 with a coupon rate of 7.250% per annum. The proceeds will be used to finance a tender offer, fund a redemption, and pay related fees and expenses.

MONTRÉAL, April 04, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US$750 million aggregate principal amount of Senior Notes due 2031 (the “New Notes”). The New Notes carry a coupon of 7.250% per annum, mature on July 1, 2031 and were sold at 99.75% of par.

Bombardier intends to use the proceeds of the offering of the New Notes, together with cash on hand, (i) to finance the offer to purchase (the “2026 Tender Offer”) up to US$550 million aggregate purchase amount (exclusive of accrued and unpaid interest) of its outstanding 7.125% Senior Notes due 2026 (the “2026 Notes”), of which there is US$1,001 million aggregate principal amount outstanding on the date hereof, (ii) to fund the redemption (the “2027 Notes Redemption”) of US$200 million aggregate purchase amount (exclusive of accrued and unpaid interest) of its outstanding 7.875% Senior Notes due 2027 (the “2027 Notes”), of which there is US$1,733 million aggregate principal amount outstanding on the date hereof, and (iii) for the payment of accrued interest and related fees and expenses.

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 New Notes 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 New Notes 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 New Notes 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 New Notes 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 +1 514 240 9649

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

What is the principal amount of the Senior Notes due 2031 offered by Bombardier Inc.?

Bombardier Inc. offered $750 million aggregate principal amount of Senior Notes due 2031.

What is the coupon rate of the New Notes issued by Bombardier Inc.?

The New Notes issued by Bombardier Inc. carry a coupon of 7.250% per annum.

How will Bombardier Inc. utilize the proceeds from the offering of the New Notes?

Bombardier Inc. intends to use the proceeds to finance a tender offer, fund a redemption, and pay related fees and expenses.

Under which regulations were the New Notes offered and sold in the United States?

The New Notes were offered and sold in the United States 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.

Were the New Notes qualified for distribution to the public under Canadian securities laws?

The New Notes were not qualified for distribution to the public under applicable Canadian securities laws and were offered and sold in Canada on a private placement basis only to accredited investors.