Bombardier to sell $1 billion eight-year notes in Thursday drive-by; initial talk 8%-8¼%

By Paul A. Harris

Portland, Ore., Feb. 28 – Bombardier Inc. plans to price a $1 billion offering of eight-year senior notes (existing ratings Caa1/B-) in a quick-to-market Thursday trade trailing a mid-morning conference call with investors, according to market sources.

Initial talk has the Rule 144A and Regulation S for life deal shaping up to yield 8% to 8¼%, a trader said.

Citigroup Global Markets Inc. is the left bookrunner. J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., RBS Capital Markets LLC, UBS Investment Bank, NBC, TD Securities, Credit Suisse Securities (USA) LLC, Commerz Bank, Credit Agricole CIB and Natixis are the joint bookrunners.

BBVA Securities Inc. and Morgan Stanley & Co. LLC are the senior co-managers.

Bayern LB, UniCredit, Lloyds, ABN Amro and Desjardins are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 35% equity clawback and a 101% poison put.

The Montreal-based aerospace and transportation services company plans to use the proceeds to finance its tender for all of its outstanding 2020 notes and for general corporate purposes, including debt repayment.

© 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.