Bombardier to settle early tenders for floaters, 8% notes by Friday

By Susanna Moon

Chicago, Nov. 4 - Bombardier Inc. said investors had tendered €251,954,000, or 52%, of its €482,483,000 floating-rate senior notes due 2013 and $144.6 million, or 38%, of its $385 million 8% senior notes due 2014 as of 12:01 a.m. ET on Nov. 4, the early participation date.

Bombardier said it expects to settle the tendered notes by Nov. 5.

For each €1,000 or $1,000 principal amount, holders will receive €1,001.25 for the floaters and $1,042.50 for the 8% notes tendered by the early participation date. The total amount includes a premium of €1.25 for the floaters and $2.50 for the 8% notes.

Holders who tender their notes after the early date will not receive the early tender premium.

The offers will expire at 12:01 a.m. ET on Nov. 19. They began on Oct. 21.

Tendered notes may not be withdrawn after the early participation deadline.

The company said it is tendering for the notes to take advantage of favorable conditions in the debt capital markets and to extend its debt maturity profile.

Neither offer is conditioned on any minimum amount of notes being tendered.

Bombardier's obligation to purchase the notes, however, requires the completion of a financing with proceeds of at least $1 billion.

The company said it expects to fund the offers with a new series of euro-denominated senior notes totaling $1 billion with maturities of up to 2021.

Deutsche Bank AG, London Branch (+44 20 7545 8011) and Deutsche Bank Securities Inc. are the dealer managers.

For questions about the tender of floaters, contact Lucid Issuer Services Ltd. at +44 20 7704 0880 or at bombardier@lucid-is.com. For information about the offer for the 8% notes, call Deutsche Bank Securities at 866 627-0391 or collect 212 250-2955.

Bombardier said on Nov. 2 that it would redeem all of the notes that remain outstanding after the tender offers.

The company will pay par for the floaters and 104 for the 8% notes plus accrued interest up to the redemption date of Dec. 2.

Proceeds from the company's private offering of 6 1/8% senior notes due 2021 will fund the redemption.

Deutsche Bank AG, London Branch, Deutsche Bank Trust Co. Americas and Deutsche Bank Luxemburg SA are the redemption agents.

Bombardier is a Montreal-based manufacturer of air and rail transportation equipment, systems and services.

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