Bombardier prices senior notes issuance

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By TESTCustomwebLP TESTCustomwebLP April 1, 2014 20:27

Bombardier prices senior notes issuance

Bombardier has successfully priced its offering of $1.8 billion US aggregate principal amount of new Senior Notes. The issuance is comprised of $600 million US aggregate principal amount of Bombardier’s Senior Notes due April 15, 2019, which carry a coupon of 4.75% per annum and will be sold at par, and $1.2 billion US aggregate principal amount of Bombardier’s Senior Notes due October 15, 2022, which carry a coupon of 6.00% per annum and will be sold at par. The issuance is expected to close on or about April 3, 2014, subject to customary closing conditions.

Bombardier intends to use the proceeds of this offering to finance the redemption of all of Bombardier’s outstanding 7.25% Senior Notes due November 15, 2016 pursuant to an optional redemption promptly following the closing of this offering, to finance the repayment at maturity of all of the Corporation’s outstanding 6.30% Notes due May 1, 2014, to pay fees and expenses related to this offering and the related transactions, and as to the remainder, for general corporate purposes.

This issuance will improve Bombardier’s debt maturity profile and also boost its cash position by about $500 million, says credit rating agency Moody’s. However some analysts are concerned over the potential negative impact on the company’s financial health related to difficulties Bombardier has been experiencing with development of the CSeries, as well as the high capital costs of programme.

Moody’s said it now views Bombardier’s liquidity as “‘good’ rather than ‘adequate’.”

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By TESTCustomwebLP TESTCustomwebLP April 1, 2014 20:27
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