By Paul A. Harris
St. Louis, March 15 - Approximately one month after it postponed a $1 billion offering of notes due to market conditions, Bombardier Inc. returned on Monday to sell a massively upsized $1.5 billion deal, according to market sources.
The Montreal-based manufacturer of air and rail transportation equipment, systems and services priced the upsized deal in two bullet tranches of senior notes (Ba2/BB+/).
Bombardier priced $650 million of eight-year notes at par to yield 7½%. The yield printed on top of price talk.
The company also priced $850 million of 10-year notes at par to yield 7¾%, also on top of price talk.
J.P. Morgan Securities, Deutsche Bank Securities and UBS Investment Bank were joint bookrunners for the quick-to-market Monday deal.
Co-managers were Citigroup Global Markets Inc., RBC Capital Markets, Commerzbank Capital Markets, SG Americas Securities, LLC, BNP Paribas Securities, Credit Agricole Securities (USA) Inc., NBF Securities (USA) Corp., RBS Securities Inc., CIBC World Markets and Natixis Bleichroeder LLC
Proceeds will be used to fund tender offers for the company's 6¾% notes due 2012, its 6.3% notes due 2014 and its floating-rate senior notes due 2013, as well as for general corporate purposes.
| Issuer: | Bombardier Inc.
|
| Amount: | $1.5 billion, increased from $1 billion
|
| Security description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities, Deutsche Bank Securities, UBS Investment Bank
|
| Co-managers: | Citigroup Global Markets Inc., RBC Capital Markets, Commerzbank Capital Markets, SG Americas Securities, LLC, BNP Paribas Securities, Credit Agricole Securities (USA) Inc., NBF Securities (USA) Corp., RBS Securities Inc., CIBC World Markets, Natixis Bleichroeder LLC
|
| Call protection: | Non-callable (Make-whole provision at Treasuries plus 50 bps)
|
| Change-of-control put: | 101%
|
| Trade date: | March 15
|
| Settlement date: | March 29
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A/Regulation S for life
|
| Marketing: | Quick-to-market
|
|
|
| Eight-year notes
|
| Amount: | $650 million
|
| Maturity: | March 15, 2018
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 415 bps
|
| Price talk: | 7½% area
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | March 15, 2020
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 404 bps
|
| Price talk: | 7¾% area
|
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