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Bombardier tenders 7 1/8% notes due 2026, ups cap to $550 million
By Marisa Wong
Los Angeles, March 22 – Bombardier Inc. has begun a tender offer to purchase for cash up to $400 million aggregate purchase price (exclusive of accrued interest) of its $1,000,996,000 outstanding 7 1/8% senior notes due 2026 (Cusip: 097751BV2, C10602BJ5), according to a press release.
By the end of the day on Friday, the maximum purchase amount was upsized to $550 million, as noted in a second press release during the day.
The company is offering a total consideration of $1,017.50 per $1,000 principal amount. The total consideration includes an early tender premium 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 of $987.50 per $1,000 principal amount.
The company will also pay accrued interest.
If the offer is oversubscribed by the early tender date, holders tendering after the early deadline will not have any of their notes accepted for purchase.
Tendered notes may be subject to proration.
The early tender date is 5 p.m. ET on April 4, which is also the withdrawal deadline.
The early settlement date is expected to be April 9.
The offer will expire at 5 p.m. ET on April 19.
Final settlement is expected to be April 24.
The tender offer is conditioned on the company completing an offering of new notes prior to April 9. Proceeds from the new notes, along with cash on hand, will be used to finance the tender offer for the 2026 notes as well as to fund a partial redemption of the company’s 7 7/8% senior notes due 2027, of which $1,733,000,000 principal amount is outstanding.
RBC Capital Markets, LLC (212 618-7843 or 877 381-2099) and TD Securities (USA) LLC (212 827-2842 or 866 584-2096) are dealer managers for the tender offer.
The information and tender agent is Global Bondholder Services Corp. (https://www.gbsc-usa.com/bombardier/; 855 654-2014; contact@gbsc-usa.com).
Bombardier is a Montreal-based jet manufacturer.
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