Bombardier launches tender offer for 5¾%, 6 1/8% notes

By Angela McDaniels

Seattle, Oct. 23 - Bombardier Inc. has begun a tender offer for its €500 million 5¾% notes due 2008 and the €500 million 6 1/8% notes due 2007 issued by Bombardier Capital Funding LP, according to a company news release.

The tender offer, which expires on Nov. 13, is for all of the 6 1/8% notes and for a to-be-determined amount of the 5¾% notes.

The minimum target amount of the tender offer is €500 million, with the exact repurchase amount to be announced on Nov. 14. Settlement is expected on Nov. 17.

The company said the purpose of the tender offer is to take advantage of currently favorable conditions in the debt capital markets and to extend its debt maturity profile by refinancing the notes with longer-maturity securities.

The tender offer is conditional upon completion of a proposed issue of new notes by Bombardier, a portion of the proceeds of which will be used to fund the tender offer. Bombardier said it expects to issue the new notes prior to the settlement of the tender offer, subject to market conditions.

Deutsche Bank is the dealer manager for the tender offer.

Bombardier is a Montreal-based manufacturer of airplanes and other transportation equipment.

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