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

Rhea-AI Summary

Bombardier (BDRBF) has announced the pricing of US$500 million in new Senior Notes due June 15, 2033. The notes will carry a 6.750% annual coupon and will be sold at par. The issuance is expected to close around May 29, 2025.

The company plans to use the proceeds, along with cash on hand, to repay existing debt, including 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.

Positive

• Lower interest rate on new notes (6.750%) compared to existing 2027 notes (7.875%), reducing interest expenses
• Successful debt refinancing extends maturity profile to 2033
• Demonstrates continued access to capital markets

Negative

• Still maintains significant debt load with new $500M notes issuance
• Transaction costs and fees associated with refinancing will impact cash position

MONTRÉAL, May 14, 2025 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully priced its offering of US$500 million aggregate principal amount of new Senior Notes due June 15, 2033. The new Senior Notes will carry a coupon of 6.750% per annum and will be sold at par (the “New Notes”). The issuance of the New Notes is expected to close on or about May 29, 2025, subject to customary closing conditions.

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 such redemption, the “Conditional 2027 Notes Redemption”), and (ii) to pay accrued interest and related fees and expenses. As of the date hereof, there is US$683,142,000 aggregate principal amount outstanding of the 2027 Notes.

Consummation of the offering of the New Notes and the Conditional 2027 Notes Redemption are subject to market and other conditions, including the completion of the offering of the New Notes prior to the redemption date set forth in such notice of redemption, and there can be no assurance that Bombardier will be able to successfully complete these transactions on the terms described above, or at all.

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

FAQ

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

Bombardier's new Senior Notes due 2033 total US$500 million with a 6.750% annual coupon rate, to be sold at par.

How will Bombardier (BDRBF) use the proceeds from the 2033 Notes offering?

Bombardier will use the proceeds, along with cash on hand, to repay existing debt, primarily to redeem US$500 million of its 7.875% Senior Notes due 2027.

When is the expected closing date for Bombardier's new Notes offering?

The issuance of the new Senior Notes is expected to close on or about May 29, 2025, subject to customary closing conditions.

What is the current outstanding amount of Bombardier's 2027 Notes?

There is currently US$683,142,000 aggregate principal amount outstanding of Bombardier's 2027 Notes.