Bombardier accepts tenders for 49.62% of 7 1/8% notes due 2026

By Marisa Wong

Los Angeles, April 22 – Bombardier Inc. announced the final results of its March 22 tender offer to purchase for cash up to $550 million aggregate purchase price (exclusive of accrued interest) of its $1,000,996,000 of outstanding 7 1/8% senior notes due 2026 (Cusips: 097751BV2, C10602BJ5).

Holders had tendered an additional $195,000 of the notes after the early tender date and at or prior to the expiration date, according to a Monday press release. The early tender date was 5 p.m. ET on April 4, which was also the withdrawal deadline. The offer expired at 5 p.m. ET on April 19.

Including the $496,512,000 of notes previously tendered under the offer and purchased by Bombardier on April 9, a total representing 49.62% of the aggregate amount of notes outstanding prior to the tender offer was tendered.

About $504,289,000 of the notes will remain outstanding after completion of the tender offer. Final settlement is expected to be on April 24.

As previously reported, the maximum purchase amount had been upsized shortly after launch of the tender offer to $550 million from $400 million.

The company was offering a total consideration of $1,017.50 per $1,000 principal amount. The total consideration included an early tender premium of $30 per $1,000 of notes tendered by the early tender date.

Holders who tendered after the early tender date will receive the tender offer consideration of $987.50 per $1,000 principal amount.

The company also paid or will pay accrued interest.

The tender offer was conditioned on the company completing an offering of new notes prior to April 9. The company priced $750 million of new notes, expected to settle on April 4. Proceeds from the new notes, along with cash on hand, will be used to finance the tender offer for the 2026 notes as well as to fund a partial redemption of the company’s 7 7/8% senior notes due 2027, of which $1,733,000,000 principal amount is outstanding.

RBC Capital Markets, LLC (212 618-7843 or 877 381-2099) and TD Securities (USA) LLC (212 827-2842 or 866 584-2096) are dealer managers for the tender offer.

The information and tender agent is Global Bondholder Services Corp. (https://www.gbsc-usa.com/bombardier/; 855 654-2014; contact@gbsc-usa.com).

Bombardier is a Montreal-based jet manufacturer.

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