By Paul Deckelman
New York, March 31 - Bombardier Inc. priced a quick-to-market $1.8 billion two-part junk bond offering (Ba3/BB-/BB-) on Monday, high-yield syndicate sources said.
The transaction consisted of $600 million five-year senior notes that priced at par to yield 4¾% and $1.2 million of 81/2-year senior notes that also priced at par to yield 6%.
Price talk on the five-year tranche had envisioned a yield between 4¾% and 4 7/8%, while price talk on the 81/2-year bonds was in the 6 1/8% area.
The five-year notes are non-callable for the life of the issue, other than via a make-whole call, while the 81/2-year notes will have three years of such call protection.
The notes are being sold under Rule 144A and Regulation S for the life of the issue.
The bookrunners on the deal were BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, National Bank of Canada Financial Inc. and UBS Securities LLC.
Bombardier, a Montreal-based manufacturer of aircraft, railroad equipment and other transportation equipment, plans to use the net proceeds of the deal to call its existing €785 million of 7¼% notes due 2016 for redemption and to repay upon their maturity its $162 million of 6.3% notes that are scheduled to come due on May 1. The remainder of the proceeds will go for general corporate purposes.
| Issuer: | Bombardier Inc.
|
| Amount: | $1.8 billion
|
| Security description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, National Bank of Canada Financial Inc., UBS Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 31
|
| Settlement date: | April 3
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | April 15, 2019
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Price talk: | 4¾% to 4 7/8%
|
| Call: | Non-call for life
|
| Make-whole call: | Treasuries plus 50 bps
|
|
|
| 81/2-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Oct. 15, 2022
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Price talk: | 6 1/8% area
|
| Call: | Non-call until April 15, 2017, then callable at 104.5, 103, 101.5 and finally at par on or after April 15, 2020
|
| Make-whole call: | Treasuries plus 50 bps
|
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