Bombardier has closed an offering of $750m senior notes due February 1st 2029.
The notes carry a coupon rate of 7.5% per year. The proceeds from the offering, alongside Bombardier’s cash in hand, will be used to fund its outstanding 7.500% senior notes due 2024, and to finance the offer to purchase up to $345m aggregate principal of its outstanding 7.5% senior notes due 2025, as well as related fees and expenses. The company issued the new notes on January 18th.
Bombardier has been restructuring debt over recent years, having previously issued more than $2bn in senior notes in March 2019 at a comparatively high-yield to finance tender offers that were due in 2020 and 2021.
At the end of 2017, the company closed an offering of $1bn senior notes that were due in December 2024.
The Canadian OEM reported a better than expected fourth quarter in its 2022 preliminary financial results, having delivered 123 aircraft in the year compared with the guidance of 120 or fewer. As a result, Bombardier had a book-to-bill of 1.4 and a predicted order backlog growth to about $14.8bn.
