Bombardier signs Letter of Credit Facility
May 30, 2011, Montreal - Bombardier announces today the closing of a EUR3.4 billion (approximately $4.9 billion US) Letter of Credit Facility with a syndicate of first quality international financial institutions.
The facility is set up for the sole benefit of Bombardier Transportation and matures in 2016. This facility is the renewal of the previous letter of credit facility of EUR3.75 billion which was maturing in 2013.
This new agreement meets Bombardier's objectives of taking advantage of current favourable conditions, securing availability of letters of credit well ahead of time, at improved pricing, while preserving its letter of credit issuance capacity. It will also increase the Corporation's liquidity by releasing the totality of the invested collateral related to the previous facility, amounting to EUR404 million (approximately $577 million US).
"With EUR5.4 billion of commitments received and 21 new banking relationships, Bombardier is pleased with this clear demonstration of bank support for its business plan," said Pierre Alary, Senior Vice President and Chief Financial Officer.
BNP Paribas, Commerzbank, Credit Agricole, Deutsche Bank and J.P. Morgan, have jointly arranged the Bombardier Transportation facility as Mandated Lead Arrangers with Natixis, Societe Generale and Royal Bank of Scotland acting as additional Joint Bookrunners.