Bombardier reinstates withdrawal rights in tender for 3 notes series

By Jennifer Chiou

New York, April 1 - Bombardier Inc. said it reinstated the withdrawal rights for holders in its cash tender offer for up to $550 million of its 6¾% notes due 2012, $500 million of its 6.3% notes and €679 million of its floating-rate senior notes due 2013.

Holders will now be permitted to withdraw tendered notes at any time before 5 p.m. ET on April 7. Withdrawal rights had previously ended on March 29.

The offer began on March 15 and will end at 9 a.m. ET on April 12.

As of March 31, the company said that holders tendered $398,884,000, or 73%, of its 6¾% notes, $337,986,000, or 68%, of its 6.3% notes and €241,307,000, or 36%, of its floaters.

For each $1,000 or €1,000 principal amount tendered by 9 a.m. ET on March 29, the early participation date, the company paid $1,080 for the 6¾% notes, $1,040 for the 6.3% notes and par for floaters.

The total payout included a consent premium of $50.00 for the 6¾% notes, $50.00 for the 6.3% notes and €20.00 for floaters.

The company also will pay accrued interest to the payment date.

The tender offer is not conditioned on any minimum amount of notes being tendered.

Bombardier's obligation to accept and to purchase the notes, however, requires completion of a financing of at least $1 billion in gross proceeds. The tender offer is expected to be financed by Bombardier's in private placement of $1 billion principal amount of new senior notes with maturities of up to 2020, according to a prior company press release.

The company previously said it began the tender offer "to take advantage of current favorable conditions in the debt capital markets and to extend Bombardier's debt maturity profile by refinancing a portion of Bombardier's long-term debt due in 2012, 2013 and 2014 with longer maturity financing."

Bombardier said on March 8 that it terminated the cash tender offer to purchase up to $550 million total principal amount of the three series of notes, which began on Feb. 8. That offer also was subject to the completion of one or more financings in which it received at least $1 billion in proceeds.

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

The dollar notes are held in book-entry form through the facilities of the Depository Trust Co., and the floaters are held in book-entry form through a common depositary or its nominee for Euroclear Bank SA/NV and Clearstream Banking, SA.

J.P. Morgan Securities Inc. (866 834-4666 or collect 212 834-3424), J.P. Morgan Securities Ltd. (+44 (0)20 7325 9633), Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) and Deutsche Bank AG, London Branch (+44 20 7545 8011) are dealer managers for the tender offer.

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

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

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