Bombardier Announces Pricing of its New Issuance of Senior Notes Due 2018 and Senior Notes Due 2025
(Thomson Reuters ONE) -
Bombardier Inc. /
Bombardier Announces Pricing of its New Issuance of Senior Notes Due 2018 and
Senior Notes Due 2025
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The issuer is solely responsible for the content of this announcement.
MONTREAL, QUEBEC--(Marketwired - Feb 27, 2015) - Bombardier Inc.
(TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) today announced that it has successfully
priced its offering of US$2.25 billion aggregate principal amount of new Senior
Notes. The issuance is comprised of US$750 million aggregate principal amount of
Bombardier's Senior Notes due September 15, 2018 which carry a coupon of 5.500%
per annum and will be sold at par (the "2018 Notes"), and US$1.5 billion
aggregate principal amount of Bombardier's Senior Notes due March 15, 2025 which
carry a coupon of 7.500% per annum and will be sold at par (the "2025 Notes,"
and together with the 2018 Notes, the "Notes"). The issuance is expected to
close on or about March 13, 2015, subject to customary closing conditions.
Bombardier will deposit, or direct the deposit of, cash in an amount equal to
the aggregate principal amount of Notes, plus interest that is expected to
accrue on the aggregate principal amount of the Notes as calculated in
accordance with the terms of the indentures governing the Notes from the closing
date of the issuance to, but not including, the third business day following
April 30, 2015 (the "Escrowed Funds"), into escrow. Subject to the release to
Bombardier of the net proceeds from the previously announced issuance and sale
of subscription receipts of Bombardier pursuant to a prospectus supplement dated
February 20, 2015 to Bombardier's short form base shelf prospectus dated
February 18, 2015 (the "Escrow Release Condition"), the Escrowed Funds will be
released to Bombardier. In the event that the Escrow Release Condition is not
satisfied by 5:00pm (Montreal time) on April 30, 2015, the Notes will be subject
to a special mandatory redemption.
Bombardier intends to use the proceeds of this offering to finance the
redemption of all of Bombardier's outstanding 4.25% Senior Notes due January
2016 (the "2016 Notes") pursuant to an optional redemption promptly after the
Escrowed Funds are released to Bombardier, to pay fees and expenses related to
this offering and related transactions, and, as to the remainder, for general
corporate purposes.
This press release does not constitute an offer to sell or the solicitation of
an offer to buy any security and shall not constitute an offer, solicitation or
sale of any securities in any jurisdiction in which such offering, solicitation
or sale would be unlawful. The securities mentioned herein may be offered and
sold in the United States only to qualified institutional buyers in accordance
with Rule 144A under the U.S. Securities Act and outside the United States in
reliance on Regulation S under the U.S. Securities Act. The securities mentioned
herein have not been and will not be registered under the United States
Securities Act of 1933, as amended, any state securities laws or the laws of any
other jurisdiction, and may not be offered or sold in the United States absent
registration or an applicable exemption from such registration requirements. The
securities mentioned herein have not been and will not be qualified for
distribution to the public under applicable Canadian securities laws and,
accordingly, any offer and sale of the securities in Canada will be made on a
basis which is exempt from the prospectus and dealer registration requirements
of such securities laws. The securities will be offered and sold in Canada on a
private placement basis only to "accredited investors" pursuant to certain
prospectus exemptions.
Any redemption of the 2016 Notes will be made pursuant to a notice of redemption
under the indenture governing the 2016 Notes.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but
are not limited to: statements with respect to the Corporation's objectives,
guidance, targets, goals, priorities, market and strategies, financial position,
beliefs, prospects, plans, expectations, anticipations, estimates and
intentions; general economic and business outlook, prospects and trends of an
industry; expected growth in demand for products and services; product
development, including projected design, characteristics, capacity or
performance; expected or scheduled entry-into-service of products and services,
orders, deliveries, testing, lead times, certifications and project execution in
general; competitive position; and the expected impact of the legislative and
regulatory environment and legal proceedings on the Corporation's business and
operations; the Corporation's available liquidities and the Corporation's
capital raising plan, the completion and release of the proceeds of the offering
and the use of proceeds therefrom; the impact of the offering on the
Corporation's operations, infrastructure, opportunities, financial condition,
access to capital and overall strategy; the receipt of required regulatory and
other approvals, including shareholder approval; and the anticipated timing of
the shareholders' meeting. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "may", "will",
"expect", "intend", "anticipate", "plan", "foresee", "believe", "continue",
"maintain" or "align", the negative of these terms, variations of them or
similar terminology. By their nature, forward-looking statements require
management to make assumptions and are subject to important known and unknown
risks and uncertainties, which may cause actual results in future periods to
differ materially from those forecasted. While management considers these
assumptions to be reasonable and appropriate based on information currently
available, there is risk that they may not be accurate. Certain important
assumptions by the Corporation or its consultants in making forward-looking
statements include, but are not limited to: the satisfaction of the Escrow
Release Condition; the satisfaction of all conditions to the completion,
effectiveness or availability, as the case may require, of the offering; the
successful completion of the offering; and the Corporation's ability to
consummate the offering. For additional information with respect to the
assumptions underlying the forward-looking statements made in this press
release, refer to the respective Guidance and forward-looking statements
sections in Aerospace and in Transportation in the Management's Discussion and
Analysis (MD&A) of the Corporation's financial report for the fiscal year ended
December 31, 2014.
Certain factors that could cause actual results to differ materially from those
anticipated in the forward-looking statements include, but are not limited to,
risks associated with general economic conditions, risks associated with the
Corporation's business environment (such as risks associated with the financial
condition of the airline industry and major rail operators), operational risks
(such as risks related to developing new products and services; doing business
with partners; product performance warranty and casualty claim losses;
regulatory and legal proceedings; the environment; dependence on certain
customers and suppliers; human resources; fixed-price commitments and production
and project execution), risks relating to the Corporation's ability to implement
its capital raising plan and mitigate potential liquidity underperformance;
financing risks (such as risks related to liquidity and access to capital
markets, exposure to credit risk, certain restrictive debt covenants, financing
support provided for the benefit of certain customers and reliance on government
support); the Escrow Release Condition not being satisfied; and market risks
(such as risks related to foreign currency fluctuations, changing interest
rates, decreases in residual values and increases in commodity prices). For more
details, see the Risks and uncertainties section in Other in the MD&A of the
Corporation's financial report for the fiscal year ended December 31, 2014.
Readers are cautioned that the foregoing list of factors that may affect future
growth, results and performance is not exhaustive and undue reliance should not
be placed on forward-looking statements. The forward-looking statements set
forth herein reflect management's expectations as at the date of this press
release and are subject to change after such date. Unless otherwise required by
applicable securities laws, the Corporation expressly disclaims any intention,
and assumes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. The forward-
looking statements contained in this press release are expressly qualified by
this cautionary statement.
Isabelle Rondeau
Director, Communications
Bombardier Inc.
+514 861 9481
Shirley Chenier
Senior Director, Investor Relations
Bombardier Inc.
+514 861 9481
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Bombardier Inc. via GlobeNewswire
[HUG#1898420]
Unternehmensinformation / Kurzprofil:
Datum: 01.03.2015 - 22:49 Uhr
Sprache: Deutsch
News-ID 375098
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