Bombardier commences ‘pragmatic’ consent solicitations for several series

Chicago, May 3 – Bombardier Inc. commenced consent solicitations for eight series of notes on Monday, according to a press release.

The consent solicitations are being undertaken as a “pragmatic” and “expedient and efficient” path after a letter from counsel representing a noteholder of its 2034 notes alleged that the divestitures of certain non-core assets constitute a breach of certain covenants under the indenture governing the notes. The company divested its transportation business, regional jet program and aerostructures division.

The company believes that the allegations are without merit; however, it is pursuing the most expedient path forward via consent solicitations for the following series of notes:

• 5¾% senior notes due 2022 (ISINs: US097751AY72, USC10602AR84);

• 6% senior notes due 2022 (ISINs: US097751BJ96, USC10602AY36);

• 6 1/8% senior notes due 2023 (ISINs: US097751BF74, USC10602AW79);

• 7½% senior notes due 2024 (ISINs: US097751BR13, USC10602BF38);

• 7½% senior notes due 2025 (ISINs: US097751BM26, USC10602BA41);

• 7.35% debentures due 2026 (ISINs: CA097751AE11);

• 7 7/8% senior notes due 2027 (ISINs: US097751BT78, USC10602BG11); and

• 7.45% senior notes due 2034 (ISINs: US097751AL51, USC10602AJ68).

Noteholders are being asked to consent to an amendment to each indenture governing each series of notes that the divestitures of the assets listed above are permitted under the applicable indenture and do not and will not give rise to any defaults, events of default or change of control and that noteholders waive any event of default that is alleged to have, has or may have arisen through the divestitures of the non-core assets.

Each consent solicitation requires consents from a majority of noteholders.

Should the company receive the required consents and the proposed amendments are adopted and become operative, noteholders will receive $1.25 per $1,000 of notes or C$1.25 per C$1,000 of notes in the case of the 7.35% debentures due 2026. Noteholders must deliver consents by 5 p.m. ET on May 11 to be eligible to receive the consent fee.

Global Bondholder Services Corp. (866 807-2200 or contact@gbsc-usa.com) is the information and tender agent for the U.S. notes.

Kingsdale Partners LP has been retained for the Canadian notes (888 518-6824, corpaction@kingsdaleadvisors.com).

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) and UBS Securities LLC are the solicitation agents (203 719-4210, 888 719-4210).

The issuer is a Montreal-based aerospace and transportation services company.

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