Bombardier Inc. : Bombardier Provides Dividend Basis and Notice of Conversion Privilege of its Series 2 and Series 3 Preferred Shares
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Bombardier Inc. : Bombardier Provides Dividend Basis and Notice of Conversion
Privilege of its Series 2 and Series 3 Preferred Shares
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The issuer is solely responsible for the content of this announcement.
Company announces share conversion privilege of Series 2 and Series 3 Preferred
Shares and dividend rate reset of Series 3 Preferred Shares, which occur every
five years
MONTREAL, QUEBEC--(Marketwired - Jun 16, 2017) - In connection with the
conversion privilege for holders of its Series 2 and Series 3 Preferred Shares,
Bombardier Inc. (TSX: BBD.B)(TSX: BBD.A)(TSX: BBD.PR.B)(TSX: BBD.PR.D) today
announced the basis for resetting the dividend rate on its Series 3 Preferred
Shares in accordance with the terms applicable to those shares.
Holders of Bombardier Inc. Series 2 Preferred Shares have the right to convert
all or part of their shares, effective on August 1, 2017, on a one for one basis
into Series 3 Preferred Shares. Holders of Bombardier Inc. Series 3 Preferred
Shares have the right to convert all or part of their shares, effective on
August 1, 2017, on a one for one basis into Series 2 Preferred Shares. Holders
who do not convert their shares will retain their Series 2 Preferred Shares or
Series 3 Preferred Shares, as the case may be, unless automatically converted in
accordance with the terms of the Series 2 or Series 3 Preferred Shares, as
described below.
In the case of the Series 2 Preferred Shares, starting as of August 1, 2017,
holders will continue to receive a monthly floating adjustable cash dividend, as
and when declared by the Board of Directors of Bombardier Inc., based on a
dividend rate equal to a percentage of the prime rate, subject to certain
adjustments in accordance with the terms of such shares.
In the case of the Series 3 Preferred Shares, starting as of August 1, 2017,
holders will receive a quarterly fixed cash dividend for the following five
years, as and when declared by the Board of Directors of Bombardier Inc., based
on a fixed rate equal to 265% of the yield on five-year non-callable Government
of Canada bonds determined as at July 11, 2017, in accordance with the terms of
such shares. The annual dividend rate applicable to the Series 3 Preferred
Shares will be published on July 12, 2017 in select newspapers.
Any registered shareholder who wishes to convert his or her Series 2 and/ or
Series 3 Preferred Shares must complete and sign the conversion panel contained
on the back of the Series 2 or Series 3 Preferred Share certificate as the case
may be, and deliver it, at the latest by 5:00 p.m. (Montreal time) on July
18, 2017, to Computershare Investor Services Inc.
Shareholders who are beneficial owners and who wish to exercise their right of
conversion should communicate as soon as possible with their broker or other
nominee and follow their instructions. In that case, it is important that they
follow such instructions and act in the timeframe advised so as to provide
enough time to their broker or other nominee to meet the July 18, 2017 deadline.
If, after July 18, 2017, Bombardier Inc. determines that there would be less
than one million Series 2 Preferred Shares outstanding after the conversion date
(being August 1, 2017), then all remaining Series 2 Preferred Shares will
automatically be converted into Series 3 Preferred Shares on a one-for-one
basis. However, if, after July 18, 2017, Bombardier Inc. determines that there
would be less than one million Series 3 Preferred Shares outstanding after the
conversion date (being August 1, 2017), then all remaining Series 3 Preferred
Shares will automatically be converted into Series 2 Preferred Shares on a one-
for-one basis. In either case, Bombardier Inc. shall give a written notice to
that effect to holders of such remaining shares no later than July 25, 2017.
Subject to the conditions mentioned in the previous paragraph, on August
1, 2017, and every five years thereafter, holders of Series 2 Preferred Shares
and holders of Series 3 Preferred Shares will have again the right to convert
their shares into shares of the other series.
The Series 2 and Series 3 Preferred Shares are listed on the Toronto Stock
Exchange under the ticker symbol BBD.PR.B and BBD.PR.D, respectively.
For more information on the terms of, and risks associated with an investment
in, the Series 2 and Series 3 Preferred Shares, and exercising conversion
privileges related thereto, please see Bombardier Inc.'s short form prospectus
dated May 13, 1997 which is available on the SEDAR Web site at www.sedar.com.
About Bombardier
Bombardier is the world's leading manufacturer of both planes and trains.
Looking far ahead while delivering today, Bombardier is evolving mobility
worldwide by answering the call for more efficient, sustainable and enjoyable
transportation everywhere. Our vehicles, services and, most of all, our
employees are what make us a global leader in transportation.
Bombardier is headquartered in Montreal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
North America Index. In the fiscal year ended December 31, 2016, we posted
revenues of $16.3 billion. News and information are available at bombardier.com
or follow us on Twitter (at)Bombardier.
Bombardier is a trademark of Bombardier Inc.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but
are not limited to, statements relating to future conversions and quantum and
payment of dividends with respect to the Series 2 Preferred Shares and the
Series 3 Preferred Shares.
Forward-looking statements can generally be identified by the use of forward-
looking terminology such as "may", "will","shall", "can", "expect", "estimate",
"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 our actual results in future periods to differ
materially from forecast results set forth in forward-looking statements. 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 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 our
business environment (such as risks associated with the financial condition of
the airline industry, business aircraft customers, and the rail industry; trade
policy; increased competition; political instability and force majeure),
operational risks (such as risks related to developing new products and
services; development of new business; the certification and homologation of
products and services; fixed-price and fixed-term commitments and production and
project execution; pressures on cash flows based on project-cycle fluctuations
and seasonality; our ability to successfully implement and execute our strategy
and transformation plan; 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;
reliance on information systems; reliance on and protection of intellectual
property rights; and adequacy of insurance coverage), financing risks (such as
risks related to liquidity and access to capital markets; retirement benefit
plan risk; exposure to credit risk; substantial existing debt and interest
payment requirements; certain restrictive debt covenants and minimum cash
levels; financing support provided for the benefit of certain customers; and
reliance on government support), market risks (such as risks related to foreign
currency fluctuations; changing interest rates; decreases in residual values;
increases in commodity prices; and inflation rate fluctuations). For more
details, see the Risks and uncertainties section in Other in the Management's
Discussion and Analysis (MD&A) of the Corporation's financial report for the
fiscal year ended December 31, 2016. For additional information with respect to
the assumptions underlying the forward-looking statements made in this press
release, refer to the Guidance and forward-looking statements sections in the
MD&A of the Corporation's financial report for the fiscal year ended December
31, 2016.
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.
Contacts:
Simon Letendre
Senior Advisor, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481
Jennifer McCaughey
Director, Investor Relations
Bombardier Inc.
+514 861 9481
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bombardier Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 16.06.2017 - 19:27 Uhr
Sprache: Deutsch
News-ID 548375
Anzahl Zeichen: 11081
contact information:
Town:
West Montreal, QC
Kategorie:
Business News
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