Bombardier Inc. (TSX: BBD.B) announced this morning the pricing of its recently upsized US$1.2 billion senior notes due 2026. The notes will carry 7.125% annual interest and will be sold at 100% of par.
The company said the net proceeds of this debt offering are expected to finance Bombardier’s US$1.0 billion tender offer, which applies to the following:
- 5.750% senior notes due 2022, which has a current outstanding principal amount of US$181.2 million
- 6.000% senior notes due 2022, which has a current outstanding principal amount of US$1.2 billion
- 6.125% senior notes due 2022, which has a current outstanding principal amount of US$1.0 billion
The remainder of the proceeds will be used for general corporate purposes, including the repayment of other outstanding debt.
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The offering is expected to close June 8, 2021, subject to customary conditions.
Bombardier Inc. last traded at $10.10 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
