Bombardier Strengthens Financial Strategy with $250 Million Bond Offering
Montréal, Friday, 5 September 2025.
Bombardier Inc. announces a $250 million senior notes issuance to repay existing high-interest debt, optimizing its capital structure and supporting growth in the aviation sector.
Strategic Debt Management
On September 4, 2025, Bombardier Inc. (TSX: BBD.A) announced the pricing of its new US$250 million Senior Notes due 2033, carrying an interest rate of 6.75%. This strategic move is part of Bombardier’s efforts to manage its debt by replacing higher-interest debt with lower-cost alternatives. The proceeds from this issuance will be directed towards repaying US$166.29 million of 7.125% Senior Notes due 2026 and approximately US$84 million of 7.875% Senior Notes due 2027 [1][2][3].
Conditions and Market Considerations
The offering and subsequent redemptions are contingent upon favorable market conditions. Bombardier has communicated that the completion of the new notes offering is essential for the redemption of the outstanding notes, with the redemption planned for October 4, 2025, and payment on October 6, 2025 [1][3]. As of the announcement date, US$166,289,000 of the 2026 Notes and US$183,142,000 of the 2027 Notes remain outstanding [2][3].
Regulatory and Investor Details
These new Senior Notes will not be registered under the United States Securities Act of 1933 and are only available to qualified institutional buyers in the United States under Rule 144A and to accredited investors outside the United States under Regulation S [1][3]. This step is consistent with Bombardier’s strategy to optimize its capital structure and reduce the cost of debt amidst a competitive aviation market [1][3].
Future Outlook and Risk Management
Bombardier’s decision to issue these Senior Notes aligns with its broader financial strategy to strengthen its capital base and support growth initiatives. However, the company has highlighted that these plans are subject to market conditions, which could impact the timing and success of the offering and redemptions [1][3]. Forward-looking statements in the announcement indicate that the company is aware of the inherent risks and uncertainties involved [3].