Bombardier Announces Launch of US$500 million New Issuance of Senior Notes due 2033 to retire US$500 million of its Senior Notes due 2027
Rhea-AI Summary
Bombardier (BDRBF) has announced the launch of a US$500 million Senior Notes offering due 2033. The company plans to use the proceeds, along with cash on hand, to fund the repayment and retirement of existing debt, specifically the redemption of US$500 million of its outstanding 7.875% Senior Notes due 2027. Currently, there is US$683,142,000 aggregate principal amount outstanding of the 2027 Notes.
The completion of both the new notes offering and the 2027 Notes redemption are subject to market conditions and other factors. The New Notes will be offered exclusively to qualified institutional buyers in the United States under Rule 144A and to accredited investors in Canada through private placement.
Positive
- Debt restructuring extends maturity from 2027 to 2033, improving financial flexibility
- No net increase in debt as new issuance matches redemption amount
- Potential for improved interest terms with new notes
Negative
- Company maintains significant debt level with US$683M in 2027 Notes still outstanding
- Transaction subject to market conditions and may not complete as planned
- Additional costs from fees and accrued interest payments
News Market Reaction – BDRBF
In the trading session that priced this news, BDRBF declined 0.52%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MONTRÉAL, May 14, 2025 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has launched an offering of US
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
Consummation of the offering of the New Notes and the Conditional 2027 Notes Redemption are subject to market and other conditions, and there can be no assurance that Bombardier will be able to successfully complete these transactions on the terms described above, or at all. The Conditional 2027 Notes Redemption is expected to be subject to certain conditions, including the completion of the offering of the New Notes.
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 may be 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 will be made on a basis which is exempt from the prospectus requirements of such securities laws. The New Notes will be offered and sold in Canada on a private placement basis only to “accredited investors” pursuant to certain prospectus exemptions.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy the New Notes or an offer to purchase or solicitation of an offer to sell the 2027 Notes. This announcement does not constitute a redemption notice in respect of any 2027 Notes. Any redemption of the 2027 Notes will be made pursuant to a notice of redemption under the indenture governing such notes.
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 |
