Bombardier Inc B Stock Price, News & Analysis

Bombardier has successfully closed an offering of US$1.2 billion in Senior Notes due on June 15, 2026, with a coupon rate of 7.125%. The proceeds will finance a tender offer for outstanding Senior Notes due in 2022 and 2023 and cover related fees. Additionally, remaining funds may be used for general corporate purposes and to pay down other debt. Notably, these notes are not registered under U.S. securities laws and were sold primarily to institutional buyers.

Bombardier has successfully priced its offering of Senior Notes, increasing the total amount to US$1,200,000,000 at a 7.125% annual coupon rate, set to close around June 8, 2021. The net proceeds will finance a tender offer for up to US$1,000,000,000 in outstanding Senior Notes due in 2022 and 2023, covering the 5.750% and 6.000% Notes, among others. Completion of these transactions is subject to market conditions. The press release emphasizes that no offers are made for sales or purchases of securities.

Bombardier has launched an offering of US$1 billion in new Senior Notes due 2026. The net proceeds will primarily fund a tender offer for outstanding Senior Notes due 2022 and 2023, with remaining funds allocated to general corporate purposes, including debt repayment. However, the success of these transactions is subject to market conditions, presenting risks for completion as outlined in the press release.

Bombardier has announced the redemption of all its outstanding 8.750% Senior Notes due 2021, set for July 2, 2021. The redemption price will be disclosed on June 28, 2021. This move is part of Bombardier's financial management strategy. The press release clarifies that the securities have not been registered under U.S. securities laws and will be exempt from public distribution in Canada.

Bombardier has initiated a cash tender offer to purchase up to $1 billion of its outstanding notes, including $500 million of 6.125% Senior Notes due 2023.

The tender offer will expire on June 30, 2021, with an early tender date of June 16, 2021. Holders submitting notes before this date will receive an additional early payment of $30 per $1,000 note. The purchase will be subject to various conditions, including the completion of a New Offering that Bombardier aims to undertake concurrently.

Bombardier has confirmed an agreement with the U.S. Air Force for the Battlefield Airborne Communications Node (BACN) program. The IDIQ contract includes an immediate firm order for one Global 6000 aircraft, potentially expanding to five more, with a total value nearing $465 million. Bombardier has previously delivered four Global aircraft for this program since 2007. The company continues to provide in-service support and modifications for BACN, ensuring its aircraft meet mission requirements. The contract reinforces Bombardier's role as a significant U.S. aerospace employer.

Bombardier has successfully issued US$260 million in additional 7.45% Senior Notes due 2034, increasing the total for this series to US$510 million. The proceeds will help pay down existing debt. Furthermore, the corporation has amended its consent solicitation terms for the 2034 Notes and Canadian Notes, extending the expiration date to 5:00 p.m. on May 21, 2021. Holders must re-consent to be eligible for the Consent Payment, which remains unchanged except for the removal of the record date.

Bombardier has enhanced its global parts delivery capabilities by partnering with Sterling Global Aviation Logistics, enabling quicker dispatch in AOG situations. This collaboration provides access to a worldwide network of aircraft, strengthening Bombardier's existing parts distribution. The company is expanding its customer service network by over 50%, with 350,000 parts shipped annually and a 96% parts availability rate. This enhancement is part of Bombardier's broader strategy to improve customer service through mobile response teams and a comprehensive service center network.

Bombardier has fully repaid its 6⅛% Senior Notes due May 15, 2021, amounting to EUR 426,663,291, boosting its plan for profitability and balance sheet deleveraging. This move is part of a broader five-year strategy focusing on enhancing the Global 7500 aircraft program, boosting productivity, and growing aftermarket services. CEO Éric Martel emphasized the importance of this repayment as a step toward becoming a more profitable company and enhancing shareholder value, while maintaining emphasis on sustainability and employee engagement.