Bombardier buys $736.88 million 6¾% notes, 6.3% notes, €196.52 million floaters in tender offer

By Susanna Moon

Chicago, April 13 - Bombardier Inc. said it completed the cash tender offer for up to $1 billion of its $550 million of 6¾% notes due 2012, $500 million of 6.3% notes and €679 million of floating-rate senior notes due 2013.

Bombardier said it received no additional 6¾% notes since the early tender date, when $398,884,000 principal amount had been tendered, and that holders tendered $337,996,000 principal amount of the 6.3% notes and €244,408,000 principal amount of the floaters.

As a result, the company purchased 73% of the 6¾% notes, $337,996,000 principal amount, or 68%, of the 6.3% notes and €196,517,000 principal amount, or 36%, of the floaters.

The proration factor for the floaters was 80.44%.

The offer expired at 9 a.m. ET on April 12. It began on March 15.

For each $1,000 or €1,000 principal amount, the company paid $1,080 for 6¾% notes, $1,040 for 6.3% notes and par for floaters tendered by 9 a.m. ET on March 29, the early participation date.

The total payout included a consent premium of $50 for the 6¾% notes, $50 for the 6.3% notes and €20 for floaters.

The company also paid accrued interest to the payment date.

About $151,116,000 principal amount of the 6¾% notes, $162,004,000 principal amount of the 6.3% notes and €482,483,000 principal amount of the floaters will remain outstanding following completion of the tender offer.

The company said on April 1 that it reinstated the withdrawal rights for holders in its cash tender offer. Holders were permitted to withdraw tendered notes at any time before 5 p.m. ET on April 7.

The tender offer was not conditioned on any minimum amount of notes being tendered.

Bombardier's obligation to accept and to purchase the notes, however, required completion of a financing of at least $1 billion in gross proceeds. The tender offer is expected to be financed by Bombardier's private placement of $1 billion principal amount of new senior notes with maturities of up to 2020, according to a prior company press release.

The company previously said it began the tender offer "to take advantage of current favorable conditions in the debt capital markets and to extend Bombardier's debt maturity profile by refinancing a portion of Bombardier's long-term debt due in 2012, 2013 and 2014 with longer maturity financing."

Bombardier said on March 8 that it terminated the cash tender offer to purchase up to $550 million total principal amount of the three series of notes, which began on Feb. 8. That offer also was subject to the completion of one or more financings in which it received at least $1 billion in proceeds.

The company had postponed its $1 billion two-part offering of senior notes due to market conditions, a source told Prospect News on Feb. 16.

The dollar notes are held in book-entry form through the facilities of the Depository Trust Co., and the floaters are held in book-entry form through a common depositary or its nominee for Euroclear Bank SA/NV and Clearstream Banking, SA.

J.P. Morgan Securities Inc. (866 834-4666 or collect 212 834-3424), J.P. Morgan Securities Ltd. (+44 (0)20 7325 9633), Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) and Deutsche Bank AG, London Branch (+44 20 7545 8011) are dealer managers for the tender offer.

i-Deal LLC (877 746-3583 or banks and brokers call 201 499-3500, or send email to tenderoffer@ipreo.com) is the depositary and information agent. 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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