Bombardier sees early tenders for $496.51 million 7 1/8% notes due 2026

By Marisa Wong

Los Angeles, April 5 – Bombardier Inc. announced the early results of its March 22 tender offer to purchase for cash up to $550 million aggregate purchase price (exclusive of accrued interest) of its $1,000,996,000 of outstanding 7 1/8% senior notes due 2026 (Cusips: 097751BV2, C10602BJ5).

As of the early tender date of the offer, holders tendered $496,512,000 of the notes, according to a press release Thursday evening.

The company said all of the early tendered notes will be accepted for purchase on the early settlement date.

The maximum purchase amount had been upsized shortly after launch of the tender offer to $550 million from $400 million, as previously reported.

The company is offering a total consideration of $1,017.50 per $1,000 principal amount. The total consideration includes an early tender premium of $30 per $1,000 of notes tendered by the early tender date.

Holders tendering after the early tender date will only be eligible to receive the tender offer consideration of $987.50 per $1,000 principal amount.

The company will also pay accrued interest.

Tendered notes may be subject to proration.

The early tender date was 5 p.m. ET on April 4, which was also the withdrawal deadline.

The early settlement date is expected to be April 9.

The offer will expire at 5 p.m. ET on April 19.

Final settlement is expected to be April 24.

The tender offer is conditioned on the company completing an offering of new notes prior to April 9. The company priced $750 million of new notes, expected to settle on April 4. Proceeds from the new notes, along with cash on hand, will be used to finance the tender offer for the 2026 notes as well as to fund a partial redemption of the company’s 7 7/8% senior notes due 2027, of which $1,733,000,000 principal amount is outstanding.

RBC Capital Markets, LLC (212 618-7843 or 877 381-2099) and TD Securities (USA) LLC (212 827-2842 or 866 584-2096) are dealer managers for the tender offer.

The information and tender agent is Global Bondholder Services Corp. (https://www.gbsc-usa.com/bombardier/; 855 654-2014; contact@gbsc-usa.com).

Bombardier is a Montreal-based jet manufacturer.

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