Bombardier now has consents for five series, updates on solicitation

Chicago, May 14 – Bombardier Inc. gave an update on its consent solicitation on Friday, announcing that it has now received the requisite consents for five series of notes, according to a press release.

With two exceptions, the consent solicitation expired 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, had previously been extended to 5 p.m. ET on May 18. And, now the deadline for consents for the 7.45% notes due 2034 has also been extended to the same time.

The consent payment for the consented notes will be made on May 17.

As previously reported, the company is seeking consents for the following series of notes, with a notation for the series that have received sufficient consents:

• 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), with a previously extended deadline;

• 7 7/8% senior notes due 2027 (ISINs: US097751BT78, USC10602BG11), with required receipts received by May 13, the second deadline; and

• 7.45% senior notes due 2034 (ISINs: US097751AL51, USC10602AJ68), now with a new extended deadline.

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, according to the company. The company divested its transportation business, regional jet program and aerostructures division.

The company said it believes that the allegations are without merit; however, it is pursuing the most expedient path forward via the consent solicitations.

Noteholders are/were 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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