Bombardier Announces Closing of its Offering of Additional 6.75% Senior Notes due 2033

Rhea-AI Summary

Bombardier (BDRBF) has successfully closed its previously announced offering of US$250 million in Senior Notes due 2033. These Additional Notes are an extension of the existing US$500 million 6.750% Senior Notes due 2033 issued in May 2025.

The Additional Notes carry a 6.750% annual coupon, mature on June 15, 2033, and were sold at 103.500% of face value plus accrued interest. The proceeds will be used to repay existing debt, including the redemption of all outstanding 7.125% Senior Notes due 2026 (US$166.3 million) and approximately US$84 million of 7.875% Senior Notes due 2027.

Positive

• None.

Negative

• Increased total debt by US$250 million
• Additional interest expense from new notes

MONTREAL, Sept. 18, 2025 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully closed its previously announced offering of US$250 million aggregate principal amount of Senior Notes due 2033 (the “Additional Notes”). The Additional Notes constitute a further issuance of, and form a single series with, the existing US$500 million aggregate principal amount of Bombardier’s 6.750% Senior Notes due 2033 that were originally issued on May 29, 2025. The Additional Notes carry a coupon of 6.750% per annum, mature on June 15, 2033 and were sold at a price of 103.500% plus accrued interest from, and including, May 29, 2025 to, but excluding, the issue date of the Additional Notes.

Bombardier intends to use the proceeds of the offering of the Additional Notes, together with cash on hand, (i) to fund the repayment and/or retirement of outstanding indebtedness, including the redemption of all of its remaining outstanding 7.125% Senior Notes due 2026 (the “2026 Notes”), and the redemption of approximately US$84 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 these redemptions, there is US$166,289,000 aggregate principal amount outstanding of the 2026 Notes and US$183,142,000 aggregate principal amount outstanding of the 2027 Notes.

The redemption date for the 2026 Notes and the 2027 Notes is October 4, 2025, in accordance with the notices of redemption issued by Bombardier on September 4, 2025, with payments expected to be completed on October 6, 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 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 +1 514 240 9649

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

FAQ

What is the size and terms of Bombardier's (BDRBF) new debt offering in September 2025?

Bombardier issued US$250 million in Additional Senior Notes due 2033 with a 6.750% coupon, priced at 103.500% of face value. These notes are an extension of the existing US$500 million notes issued in May 2025.

How will Bombardier use the proceeds from its September 2025 notes offering?

The proceeds will be used to redeem all remaining 7.125% Notes due 2026 (US$166.3 million) and approximately US$84 million of 7.875% Notes due 2027, along with paying accrued interest and related fees.

When is the redemption date for Bombardier's 2026 and 2027 Notes?

The redemption date is set for October 4, 2025, with payments expected to be completed on October 6, 2025.

What is the total amount of Bombardier's 2033 Notes after this additional offering?

The total amount will be US$750 million, combining the original US$500 million issuance from May 2025 with the new US$250 million additional notes.