Bombardier Charts Debt Strategy with New Senior Notes

2025-05-14 companies

Montréal, Thursday, 15 May 2025.
Bombardier has issued $500M in new senior notes due 2033 to strategically redeem $500M of its higher-interest 2027 notes, optimizing debt management.

New Debt Issue to Alleviate High-Interest Obligations

Bombardier Inc. (TSX: BBD.A) has strategically initiated an offering of $500 million in senior notes set to mature in 2033, with proceeds dedicated to refinancing high-interest notes. These 2033 notes carry a coupon rate of 6.750% and are anticipated to substitute the 7.875% senior notes due 2027. The issuance is set to close around May 29, 2025, subject to standard closing conditions [1][3][6].

Partial Redemption of Outstanding Debt

The company announced a conditional notice for the partial redemption of $500 million of its 2027 notes, contingent upon the successful completion of the new 2033 notes offering. This financial strategy is aimed at lowering debt servicing costs and managing Bombardier’s debt profile more effectively. The redemption price equals 100.00% of the principal amount, plus accrued interest, with the redemption scheduled for June 13, 2025 [2][4][5].

Market and Regulatory Considerations

The new notes offering will be marketed under Rule 144A and Regulation S, limiting sales to qualified institutional buyers in the U.S. and accredited investors in Canada. Notably, the issuance and any subsequent transactions will proceed without registration under the United States Securities Act of 1933 or Canadian securities laws [1][5][6].

Implications for Bombardier’s Financial Health

These maneuvers are consistent with Bombardier’s broader objective to enhance financial resilience and operational flexibility. Bombardier has reported significant stock performance, marking a growth of 24.76% year-over-year, which complements its strategy of improving debt metrics, such as the net debt to EBITDA ratio noted in recent financial statements. This underscores the company’s commitment to maintaining fiscal stability and growth momentum [3][7].

Sources

Bombardier senior notes