Bombardier Completes Partial Redemption of US$300,000,000 of its 7.875% Senior Notes due 2027

Rhea-AI Summary

Bombardier has completed a partial redemption of US$300 million of its 7.875% Senior Notes due 2027, as announced in their December 10, 2024 notice. This debt reduction was funded using cash from the company's balance sheet.

CFO Bart Demosky emphasized the company's disciplined approach to debt reduction, noting that over the last twelve months, Bombardier has utilized $400 million of balance sheet cash to reduce long-term debt. This strategic move aims to reduce leverage and improve the company's credit metrics while providing additional flexibility in executing their strategy.

The redemption process was conducted through the Depository Trust Company's facilities following their standard procedures.

Positive

• Reduced debt by US$300 million using cash from balance sheet
• Total debt reduction of US$400 million over the last 12 months
• Improved credit metrics and reduced leverage
• Enhanced financial flexibility for strategy execution

Negative

• Significant cash outlay from balance sheet reduces available liquidity
• Still carrying high-interest (7.875%) debt due 2027

News Market Reaction

-1.67%

1 alert

-1.67% News Effect

On the day this news was published, BDRBF declined 1.67%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MONTRÉAL, Jan. 09, 2025 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has redeemed US$300 million principal amount of its outstanding 7.875% Senior Notes due 2027 (the “Redemption Notes”) as set forth in the notice of partial redemption issued December 10, 2024.

“Bombardier has been disciplined and consistent in prioritizing debt reduction. This $300 million debt redemption, funded by cash from balance sheet, further underscores our continued commitment toward reducing leverage and improving the company’s credit metrics,” said Bart Demosky, Executive Vice President and CFO, Bombardier. “Over the last twelve months, Bombardier has now used $400 million of cash from its balance sheet to reduce long-term debt, giving us further flexibility in executing our strategy.”

Payment of the redemption price and surrender of the Redemption Notes for redemption are being made through the facilities of the Depository Trust Company in accordance with the applicable procedures of the Depository Trust Company.

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 Redemption 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 Redemption 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 may only be made on a basis which is exempt from the prospectus requirements of such securities laws.

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

How much debt did Bombardier (BDRBF) redeem in January 2025?

Bombardier redeemed US$300 million of its 7.875% Senior Notes due 2027 in January 2025.

What is the total debt reduction by Bombardier (BDRBF) in the last 12 months?

Bombardier has reduced its long-term debt by US$400 million over the last twelve months using cash from its balance sheet.

What interest rate were the redeemed Bombardier (BDRBF) notes carrying?

The redeemed notes carried an interest rate of 7.875% and were due in 2027.

How did Bombardier (BDRBF) fund the January 2025 debt redemption?

Bombardier funded the US$300 million debt redemption using cash from its balance sheet.