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.
The offering is expected to close June 8, 2021, subject to customary conditions.
Bombardier Inc. last traded at $10.10 on the TSX.
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