Bombardier cancels tender offer for its three note series due to 'unattractive' market conditions

By Susanna Moon

Chicago, March 8 - Bombardier Inc. said it terminated the cash tender offer to purchase up to $550 million total principal amount of its $550 million of 6¾% notes due 2012, $500 million of 6.3% notes due 2014 and €679 million floating-rate senior notes due 2013.

The tender offer was not conditioned on any minimum amount of notes being tendered, but Bombardier's obligation to accept and purchase the notes was subject to the completion of one or more financings in which it received at least $1 billion in proceeds.

Bombardier postponed its $1 billion two-part offering of senior notes due to market conditions, a source told Prospect News on Feb. 16.

"At the time we started to plan the tender offer and related institutional private placement, the debt capital markets were much more favorable than today and therefore this was an opportunity to extend the maturity of some of our debt," Pierre Alary, senior vice president and chief financial officer of Bombardier, said in a Monday press release.

"Current market conditions are such that the offering is unattractive and unsatisfactory to Bombardier at this time. As there is no debt maturity before May 2012, the termination of the tender offer and the withdrawal of this opportunistic offering will not affect Bombardier's ongoing operations."

Tender offer terms

The company had said it would pay $1,080 for its 6¾% notes and $1,040 for its 6.3% notes, including a $50 premium for each $1,000 principal amount of notes tendered by the early participation date.

The company had said it would pay par for the floaters, including a €20 premium for notes tendered by the consent date.

J.P. Morgan Securities Inc. (866 834-4666 or collect 212 834-3424), J.P. Morgan Securities Ltd., Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) and Deutsche Bank AG, London Branch were the dealer managers.

i-Deal LLC (877 746-3583 or, for banks and brokers, 201 499-3500 or e-mail tenderoffer@ipreo.com) was the depositary and information agent for the dollar notes, and Lucid Issuer Services Ltd. (44 20 7704 0880 or bombardier@lucid-is.com) was the tender and information agent for the floaters.

Bombardier is a Montreal-based manufacturer of air and rail transportation equipment, systems and services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.