Bombardier receives consents for four series, extends expiration date

Chicago, May 12 – Bombardier Inc. gave an update on its ongoing consent solicitation in a press release on Wednesday.

The company has received the required consents already for four series of the notes, as detailed below. For the four series, the supplemental indentures have been entered into but have not yet become operative.

However, to give all noteholders the opportunity to participate in the consent solicitation, the company has extended the deadline for all of the notes.

With one exception, the consent solicitation now expires at 5 p.m. ET on May 13 for all of the series, extended from 5 p.m. ET on May 11.

The consent solicitation for the 7.35% debentures due 2026, however, has been extended later to 5 p.m. ET on May 18.

The company is seeking consents for the following series of notes, with a notation for the series that have received sufficient consent as of the first deadline:

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

• 6% senior notes due 2022 (ISINs: US097751BJ96, USC10602AY36) with required consents received by the first deadline;

• 6 1/8% senior notes due 2023 (ISINs: US097751BF74, USC10602AW79) with necessary consents received by the first deadline;

• 7½% senior notes due 2024 (ISINs: US097751BR13, USC10602BF38) with required consents received by the first deadline;

• 7½% senior notes due 2025 (ISINs: US097751BM26, USC10602BA41) with needed consents received by the first deadline;

• 7.35% debentures due 2026 (ISINs: CA097751AE11), now with the more extended deadline;

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

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

As a reminder, 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 some 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 the consent solicitations.

Noteholders are being asked to consent to an amendment to each indenture governing each series of notes to permit the divestitures of the assets listed above without giving rise to any defaults, events of default or change of control and to waive any event of default that is alleged to 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 be adopted and become operative, consenting 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.

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

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

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

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