Bombardier gets consents related to 7.45% notes, 7.35% debentures

By Wendy Van Sickle

Columbus, Ohio, May 21 – Bombardier Inc. received the requisite consents from noteholders under its consent solicitation related to its 7.45% senior notes due 2034 (ISINs: US097751AL51, USC10602AJ68) and its 7.35% debentures due 2026 (ISINs: CA097751AE11), according to a press release.

The consent solicitations expired at 5 p.m. ET on May 21.

The solicitations were announced on May 3, and the solicitation regarding the 2034 notes was reset on May 18, meaning holders who had previously given their consents had to deliver their consents again in order to receive the consent payment.

As regards the 2034 notes, the company sold a $260 million add-on of the notes to a private investor.

Additionally, and separately, the company extended the deadline for the Canadian dollar-denominated notes due 2026.

Background

As previously reported, the company was seeking consents for the following series of notes, with the additional series having previously received sufficient consents:

• 5¾% senior notes due 2022 (ISINs: US097751AY72, USC10602AR84);

• 6% senior notes due 2022 (ISINs: US097751BJ96, USC10602AY36) with required consents received by the first deadline;

• 6 1/8% senior notes due 2023 (ISINs: US097751BF74, USC10602AW79) with necessary consents received by the first deadline;

• 7½% senior notes due 2024 (ISINs: US097751BR13, USC10602BF38) with required consents received by the first deadline;

• 7½% senior notes due 2025 (ISINs: US097751BM26, USC10602BA41) with needed consents received by the first deadline;

• 7.35% debentures due 2026 (ISINs: CA097751AE11);

• 7 7/8% senior notes due 2027 (ISINs: US097751BT78, USC10602BG11), with required receipts received by May 13, the second deadline; and

• 7.45% senior notes due 2034 (ISINs: US097751AL51, USC10602AJ68).

The consent solicitations were begun as a “pragmatic” and “expedient and efficient” path after a letter from counsel representing a noteholder of its 2034 notes alleged that the divestitures of some non-core assets constitute a breach of certain covenants under the indenture governing the notes, according to the company. The company divested its transportation business, regional jet program and aerostructures division.

The company said it believed that the allegations are without merit, but that it was pursuing the most expedient path forward via the consent solicitations.

Noteholders were asked to consent to an amendment to each indenture governing each series of notes to permit the divestitures of the assets listed above without giving rise to any defaults, events of default or change of control and to waive any event of default that is alleged to have arisen through the divestitures of the non-core assets.

Each consent solicitation required consents from a majority of noteholders.

Consenting noteholders will receive $1.25 per $1,000 of notes or C$1.25 per C$1,000 of notes in the case of the 7.35% debentures due 2026.

Global Bondholder Services Corp. (866 807-2200 or contact@gbsc-usa.com) is the information and tender agent for the U.S. notes.

Kingsdale Partners LP (888 518-6824, corpaction@kingsdaleadvisors.com) has been retained for the Canadian notes.

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) and UBS Securities LLC (203 719-4210, 888 719-4210) are the solicitation agents.

The issuer is a Montreal-based aerospace and transportation services company.

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