Bombardier announces $500m senior notes offering


Montreal-based aerospace manufacturer Bombardier announced the launch of a new $500m senior notes offering maturing in 2032.

The proceeds from this offering, along with existing cash reserves, will be used for strategic debt management.

Bombardier intends to use the funds to repay or retire a portion of its existing debt, including $240m of 7.125% senior notes due in 2026 and $300m of 7.875% senior notes due in 2027.

This restructuring aims to improve the company’s debt profile and liquidity.

The ratings agency Moody’s assigned a B1 rating to the proposed senior unsecured notes due 2032.

Moody’s kept the company’s B1 corporate family rating (CFR), B1-PD probability of default rating (PDR), SGL-2 speculative grade liquidity rating (SGL), B1 senior unsecured notes rating, and stable outlook unchanged.

Earlier in March this year, the company also raised $750m from a seven-year bond deal which came with 7.287% coupon.

The company’s moves to improve liability management will help if its ratings improve. Moody’s said that the ratings could be upgraded if debt to EBITDA is maintained below 4x and the company continues to generate positive free cash flow.

The company’s debt profile shows $2.8bn maturity due in 2026 and 2027.