Bombardier sets tranche sizes, price talk for €1.8 billion equivalent three-part offering

By Paul A. Harris

St. Louis, Nov. 8 - Bombardier Capital Funding LP and Bombardier Inc. set the structure and price talk on their €1.8 billion equivalent three-part notes offering (Ba2/BB) on Wednesday, according to a market source.

The Montreal-based company talked a €500 million tranche of seven-year senior floating-rate notes, which are non-callable for two years, at Euribor plus 300 to 325 basis points.

Meanwhile the company talked a $385 million tranche of eight-year senior fixed-rate notes, which are non-callable for four years, at the 8% area.

And Bombardier talked a €1 billion tranche of 10-year fixed-rate senior notes, which are non-callable for five years, at the 7¼% area.

Books are expected to close at noon ET Thursday, with pricing to follow early Friday morning.

Deutsche Bank Securities, JP Morgan and BNP Paribas are leading the deal.

Proceeds will be used to fund the tender for Bombardier Capital Funding's €500 million 6 1/8% notes due 2007 and a portion of Bombardier Inc.'s €500 million 5¾% notes due 2008.

Bombardier is an aerospace and rail transportation equipment and financial services company.

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