Bombardier sets redemption price for floaters not tendered in offer

By Jennifer Chiou

New York, Nov. 16 - Bombardier Inc. announced that it will pay €1,001.97 per €1,000 principal amount of its floating-rate senior notes due 2013 when any remaining notes are redeemed on Dec. 2.

The figure includes €1.97 for interest accrued to the redemption date.

As already reported, holders had submitted early tenders for €251,954,000, or 52%, of the €482,483,000 of floaters in an offer that is set to end at 12:01 a.m. ET on Nov. 19.

As of 12:01 a.m. ET on Nov. 4, the early participation date, Bombardier had also tallied tenders for $144.6 million, or 38%, of its $385 million 8% senior notes due 2014.

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 began on Oct. 21.

The company previously 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.

Bombardier also already announced that it would redeem any 8% notes that remain outstanding after the tender offer at 104 plus accrued interest up to the Dec. 2 redemption date.

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

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.