Bombardier offers to buy 2026, 2027 notes for up to $110 million

By Marisa Wong

Los Angeles, Nov. 6 – Bombardier Inc. has begun a tender offer to purchase for cash up to $110 million aggregate purchase price (exclusive of accrued interest) of its outstanding notes from two series, according to a press release.

Bombardier is offering to purchase notes from the following series, listed in order of acceptance priority:

• $1.2 billion outstanding 7 1/8% senior notes due 2026 (Cusip: 097751BV2, C10602BJ5), up to an aggregate purchase price of $75 million (exclusive of accrued interest), for a total consideration of $1,005; and

• $1,892,344,000 outstanding 7 7/8% senior notes due 2027 (Cusip: 097751BT7, C10602BG1), up to an aggregate purchase price of $35 million (exclusive of accrued interest), for a total consideration of $1,005.

The total consideration listed is per $1,000 principal amount and includes an early tender payment 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, which is the total consideration less the early tender payment.

The company will also pay accrued interest to but excluding the applicable settlement date.

Tenders may be subject to proration if the aggregate maximum purchase amount or the series sub-caps are exceeded.

Notes tendered at or prior to the early tender date will be accepted in priority to notes tendered after the early deadline, even if those notes tendered later have a higher acceptance priority level than those tendered earlier.

The early tender date is 5 p.m. ET on Nov. 20, which also the withdrawal deadline.

Early settlement is expected to be on Nov. 24.

The offer will expire at 5 p.m. ET on Dec. 6.

Final settlement is slated for Dec. 11.

The tender offer will be financed by the amounts raised in Bombardier’s concurrent offering of new senior notes.

The tender offer is conditioned on closing of the new issue. However, the tender offer is not conditioned on any minimum amount of notes being tendered.

Deutsche Bank Securities Inc. (212 250-7527 or 855 287-1922) and RBC Capital Markets, LLC (212 618-7843 or 877 381-2099) are dealer managers for the tender offer.

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

Bombardier is a jet manufacturer based in Montreal.

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