Bombardier Announces Pricing of US$250 million of Additional 6.75% Senior Notes due 2033

Rhea-AI Summary

Bombardier (BDRBF) has successfully priced an offering of US$250 million in additional 6.75% Senior Notes due 2033. These Additional Notes will be combined with the existing $500 million Senior Notes issued in May 2025, carrying the same 6.75% annual coupon and selling at 103.500% plus accrued interest.

The company plans to use the proceeds, along with cash on hand, to repay existing debt, including the redemption of all outstanding 7.125% Senior Notes due 2026 (US$166.29 million outstanding) and approximately US$84 million of 7.875% Senior Notes due 2027. The closing is expected around September 18, 2025, subject to market conditions.

Positive

• Refinancing of higher interest rate debt (7.125% and 7.875%) with lower rate notes (6.75%)
• Strong market confidence demonstrated by successful pricing above par (103.500%)
• Debt management initiative to improve financial structure

Negative

• Additional US$250 million in debt being taken on
• Premium pricing at 103.500% increases the effective cost of the offering

MONTRÉAL, Sept. 04, 2025 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has successfully priced its offering of US$250 million aggregate principal amount of Senior Notes due 2033 (the “Additional Notes”). The Additional Notes will be a further issuance of, and form a single series with, the existing $500 million aggregate principal amount of its 6.750% Senior Notes due 2033 that were originally issued on May 29, 2025. The Additional Notes will carry a coupon of 6.750% per annum and will be 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.

The issuance of the Additional Notes is expected to close on or about September 18, 2025, subject to customary closing conditions.

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 such redemption, the “Conditional 2026 Notes Redemption”), and the redemption of approximately US$84 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 together with the Conditional 2026 Notes Redemption, the “Conditional Notes Redemptions”), and (ii) to pay accrued interest and related fees and expenses. As of the date hereof, 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.

Consummation of the offering of the Additional Notes and the Conditional Notes Redemptions are subject to market and other conditions, including the completion of the offering of the Additional Notes prior to the redemption date set forth in such notices 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 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 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 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 will be made on a basis which is exempt from the prospectus requirements of such securities laws. The securities 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 Additional Notes or an offer to purchase or solicitation of an offer to sell the 2026 Notes or 2027 Notes. This announcement does not constitute a redemption notice in respect of any 2026 Notes or 2027 Notes. Any redemption of the 2026 Notes or 2027 Notes will be made pursuant to a notice of redemption under the indentures 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 size and purpose of Bombardier's (BDRBF) new notes offering in September 2025?

Bombardier is offering US$250 million in additional 6.75% Senior Notes due 2033, primarily to refinance existing debt including the 7.125% Senior Notes due 2026 and part of the 7.875% Senior Notes due 2027.

What is the interest rate and pricing of Bombardier's September 2025 additional notes?

The Additional Notes carry a 6.75% annual coupon and are priced at 103.500% plus accrued interest from May 29, 2025.

How much debt is Bombardier (BDRBF) refinancing with the new notes?

Bombardier is refinancing US$166.29 million of 2026 Notes and approximately US$84 million of 2027 Notes.

When will Bombardier's new Additional Notes offering close?

The Additional Notes offering is expected to close on or about September 18, 2025, subject to customary closing conditions.

What is the total amount of Bombardier's 6.75% Senior Notes due 2033 after this addition?

After this addition, the total amount will be US$750 million, combining the new US$250 million with the existing US$500 million issued in May 2025.