Bombardier raises $750m via senior notes


Bombardier Challenger 350 photographed on May 3, 2019 at KTRM

Canadian aerospace manufacturer Bombardier announced the successful closing of its previously announced offering of senior notes.

The company raised a total of $750m with these notes maturing in 2032.

The notes carry an interest rate of 7.00% per year and were sold at par value.

Bombardier plans to use the proceeds from this offering, along with existing cash reserves, to pay off some of its existing debt. This includes redeeming $338m of their 7.125% senior notes due in 2026 and $450m of their 7.875% senior notes due in 2027.

“As of the date hereof, prior to giving effect to these redemptions, there is $504m aggregate principal amount outstanding of the 2026 notes and $1.4bn aggregate principal amount outstanding of the 2027 motes,” said the company in its statement.

The redemptions are expected to be completed by June 20, 2024.