Bombardier Announces Closing of its New Issuance of Senior Notes due 2033

Rhea-AI Summary

Bombardier (BDRBF) has successfully closed its previously announced offering of US$500 million Senior Notes due 2033 with a coupon of 6.750% per annum. The company plans to use the proceeds, along with cash on hand, to repay existing debt, specifically to redeem US$500 million of its outstanding 7.875% Senior Notes due 2027. The redemption is expected to be completed on June 13, 2025. Currently, there is US$683,142,000 aggregate principal amount outstanding of the 2027 Notes. The new notes were sold at par and will mature on June 15, 2033.

Positive

• Lower interest rate on new notes (6.750%) compared to retiring notes (7.875%), reducing interest expenses
• Successful debt refinancing extends maturity from 2027 to 2033, improving debt structure
• Maintains same principal amount without increasing total debt burden

Negative

• Company continues to carry significant debt load
• New debt issuance indicates continued reliance on debt financing

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MONTRÉAL, May 29, 2025 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US$500 million aggregate principal amount of Senior Notes due 2033 (the “New Notes”). The New Notes carry a coupon of 6.750% per annum, mature on June 15, 2033 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 US$500 million aggregate principal amount of its outstanding 7.875% Senior Notes due 2027 (the “2027 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$683,142,000 aggregate principal amount outstanding of the 2027 Notes.

The redemption is expected to be completed on June 13, 2025, in accordance with the notice of partial redemption that Bombardier issued on May 14, 2025.

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

FAQ

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What is the interest rate and maturity of Bombardier's new 2033 Senior Notes?

Bombardier's new Senior Notes due 2033 carry a coupon rate of 6.750% per annum and will mature on June 15, 2033.

How much debt is Bombardier refinancing with the new 2033 Notes?

Bombardier is using the US$500 million proceeds to redeem US$500 million of its 7.875% Senior Notes due 2027.

When will Bombardier complete the redemption of the 2027 Notes?

The redemption of the 2027 Notes is expected to be completed on June 13, 2025.

How much will Bombardier save in interest costs with the new notes?

Bombardier will save approximately 1.125% in interest costs, as the new notes carry a 6.750% coupon compared to 7.875% on the retiring notes.

What is the total amount of Bombardier's 2027 Notes outstanding before this redemption?

Prior to the redemption, there is US$683,142,000 aggregate principal amount outstanding of the 2027 Notes.