Bombardier tenders for 6¾% notes, 6.3% notes and floaters due 2013

By Susanna Moon

Chicago, Feb. 8 - Bombardier Inc. said it began a cash tender offer to purchase up to $550 million total principal amount of its $550 million of 6¾% notes due 2012, $500 million of 6.3% notes due 2014 and €679 million floating-rate senior notes due 2013. The notes are listed in order of priority acceptance level.

The company said it may increase the tender cap to $1.25 billion principal amount of notes.

Tendered notes may be withdrawn at any time before 5 p.m. ET on Feb. 22.

The tender offer will expire at 9 a.m. ET on March 9.

Bombardier began the tender offer "to take advantage of current favorable conditions in the debt capital markets" and to extend its debt maturity profile by refinancing some of its long-term debt due in 2012, 2013 and 2014, according to a press release.

The company said it will pay $1,080 for its 6¾% notes and $1,040 of its 6.3% notes, including a $50.00 premium for each $1,000 principal amount of notes tendered by 5 p.m. on Feb. 22, the early participation date.

The company said it will pay par for the floaters, including a €20.00 premium for notes tendered the consent date.

The tender offer is not conditioned on any minimum amount of notes being tendered. Bombardier's obligation to accept and purchase the notes, however, is subject to the completion of one or more financings in which it receives at least $1 billion in proceeds.

J.P. Morgan Securities Inc. (866 834-4666 or collect 212 834-3424), J.P. Morgan Securities Ltd., Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) and Deutsche Bank AG, London Branch are the dealer managers.

i-Deal LLC (877 746-3583 or for banks and brokers 201 499-3500 or email tenderoffer@ipreo.com) is the depositary and information agent for the dollar notes, and Lucid Issuer Services Ltd. (44 20 7704 0880 or bombardier@lucid-is.com) is the tender and information agent for the floaters.

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

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