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Bombardier offers to buy back outstanding debt securities

Feb. 8, 2010, Montreal - Bombardier Inc. is offering to buy back up to US$550 million of its outstanding debt securities for cash, in a refinancing that the company says will take advantage of current favourable conditions on capital markets.


February 8, 2010
By The Canadian Press

The Quebec-based rail and aerospace manufacturer says the offer is subject to several conditions, including that Bombardier receives no less than US$1 billion from a placement of new senior notes with later maturities.

Bombardier also said it may increase the cap of its tender offer to US$1.25 billion, but isn't obliged to do so.

For now, Bombardier's offer applies to 6.75 per cent notes that mature 2012, 6.3 per cent notes due 2014 and euro-denominated floating-rate notes due in 2013.

The tender offer will expire at 9 a.m. ET on March 9. Notes that are tendered to the offer may be withdrawn at any time prior to 5 p.m. ET on Feb. 22 but may not be withdrawn after that.

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The amount that Bombardier will pay for the outstanding notes varies by maturity date. In addition, it will pay a premium for notes that are tendered by the Feb. 22 deadline.

There are US$550 million of the 2012 notes outstanding, US$500 million of the 2014 notes outstanding and euro$679 million of the 2013 notes outstanding.

In a separate announcement, Bombardier says a German customer has ordered 48 additional Talent 2 trains from Bombardier Inc.(TSX:BBD.B) for euro200 million, the equivalent of about US$272 million.

The latest purchase brings the total number of Talent 2 vehicles ordered by Deutsche Bahn (DB) AG to 176.