Bombardier on Monday announced a cash tender offer for certain outstanding senior notes and plans to issue new senior notes due in 2030, as well as offer redemption of some senior notes due in 2025. This comes in the wake of the company last week during its third-quarter overview projecting revenue guidance of $7.63 billion this year, up from $6.9 billion in 2022. It also said net income was in the black at $275 million for the first three quarters versus a net loss of $369 million from the year-ago period.
The tender offer calls for Bombardier to accept for purchase for cash up to $110 million of outstanding notes, including some at 7.125 percent due in 2026 (up to $75 million) and the rest at 7.875 percent due in 2027 (up to $35 million). Bombardier subsequently raised the aggregate maximum from $110 million to $360 million, the 2026 tender cap from $75 million to $200 million, and the 2027 tender cap from $35 million to $160 million. The offer expires at 5 p.m. on Dec. 6, 2023.
Bombardier plans to finance the tender offer cash with the offering of new senior notes, with an aggregate principal amount of $500 million due in 2030. This money will also enable the company to fund the redemption of all the 7.5 percent senior notes due in 2025, at a $380 million aggregate principal amount.