By Paul A. Harris
St. Louis, Nov. 10 - Bombardier Inc. priced an upsized €1.9 billion equivalent of senior notes (Ba2/BB) on Friday, according to an informed source.
The Montreal-based company priced an upsized €800 million tranche of seven-year floating-rate notes at par to yield Euribor plus 312.5 basis points, in the middle of the Euribor plus 300 to 325 basis points price talk. The floating-rate tranche was upsized by €300 million.
Bombardier also priced a $385 million tranche of eight-year fixed-rate notes at par to yield 8%, on top of price talk.
In addition, the company priced a downsized €800 million tranche of 10-year fixed-rate notes at par to yield 7¼%, also on top of price talk. The 10-year note tranche was downsized from €1 billion.
Deutsche Bank Securities, JP Morgan and BNP Paribas led the Rule 144A and Regulation S deal.
Proceeds will be used to fund the tender for Bombardier Capital Funding's €500 million of 6 1/8% notes due in 2007 and a portion of Bombardier Inc.'s €500 million of 5¾% notes due in 2008.
Bombardier is an aerospace and rail transportation equipment and financial services company.
| Issuer: | Bombardier Inc.
|
| Amount: | €1.9 billion equivalent (increased from €1.8 billion equivalent)
|
| Security description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, JP Morgan, BNP Paribas
|
| Trade date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Floating-rate notes
|
| Amount: | €800 million (increased from €500 million)
|
| Maturity: | Nov. 15, 2013
|
| Coupon: | Euribor plus 312.5 bps
|
| Price: | Par
|
| Yield: | Euribor plus 312.5 bps
|
| Call protection: | Two years
|
| Price talk: | Euribor plus 300 to 325 bps
|
|
|
| Eight-year fixed-rate notes
|
| Amount: | $385 million
|
| Maturity: | Nov. 15, 2014
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 340 bps
|
| Call features: | Callable on Nov. 15, 2010 at 104.0, 102.0, par on and after Nov. 15, 2012
|
| Price talk: | 8% area
|
|
|
| 10-year fixed-rate notes
|
| Amount: | €800 million (downsized from €1 billion)
|
| Maturity: | Nov. 15, 2016
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 352 bps
|
| Call features: | Callable on Nov. 15, 2011 at 103.625, 102.417, 101.208, par on and after Nov. 15, 2014
|
| Price talk: | 7¼% area
|
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