Bombardier to redeem senior notes
Bombardier announced a series of financial transactions including a tender offer of $110m , redeeming all of its outstanding 7.5% senior notes due in 2025 and a new offering of $500m due in 2030 to restructure its debt and support liquidity profile of the company.
The announcement comes just days after the company announced better-than-expected results for the third quarter.
The company’s tender offer said that it will purchase for cash up to $110m of its outstanding notes. Further breakdown showed Bombardier’s intentions to purchase $75m of its 7.125% senior notes due in 2026, whereas it plans to purchase the remainder $35m of its 7.875% senior notes due in 2027.
The tender offer is set to expire at 5pm on December 6th, 2023. The cumulative principal outstanding for 2026 notes is $1.2bn and $1.892bn for the 2027 notes.
Bombardier said the offer will be financed through a new $500m senior notes issue.
The company said: “… it has issued a conditional notice of redemption for all of its outstanding 7.50% Senior Notes due 2025 … the redemption date is December 6th, 2023, and the redemption price is 100% of the principal amount redeemed, plus accrued and unpaid interest.
“The redemption of the Notes is subject to and conditioned upon Bombardier completing a new offering of debt securities in the aggregate principal amount of not less than US$500 million before the Redemption Date; however, Bombardier may delay or waive this condition in its sole and absolute discretion.”