Published on : Tuesday, November 21, 2017
The issuance is for an aggregate principal amount of US$1,000,000,000 of new Senior Notes due December 1, 2024, which carry a coupon of 7.50% per annum and will be sold at par (the “Notes”). The issuance is expected to close on or about November 27, 2017, subject to customary closing conditions.
The net proceeds of the offering are expected to be used to finance a previously announced tender offer (the “Tender Offer”) for all US$600 million aggregate principal amount outstanding of Bombardier’s 4.75% Senior Notes due 2019 (“2019 Notes”) and the remainder for general corporate purposes. To the extent that less than US$600 million aggregate principal amount of the 2019 Notes are tendered in the Tender Offer, Bombardier intends to redeem all of its remaining outstanding 2019 Notes, using a portion of the net proceeds of the offering of Notes, following the closing of the offering of Notes.
Consummation of the offering of the Notes and the Tender Offer is subject to market and other conditions, and there can be no assurance that Bombardier will be able to successfully complete these transactions on the terms described above, or at all.
This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.
The Notes mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended, any state securities laws or the laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The Notes mentioned herein may be offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the U.S. Securities Act and outside the United States in reliance on Regulation S under the U.S. Securities Act.
The Notes mentioned herein have not been and will not be qualified for distribution to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Notes are being offered and sold in Canada on a private placement basis only to “accredited investors” pursuant to certain prospectus exemptions.