Bombardier Announces Conditional Redemption of 7.50% Senior Notes Due 2029

Bombardier Inc. announced it has issued a conditional notice of redemption for all of its outstanding US$750 million in 7.50% Senior Notes due 2029. The redemption is set for May 19, 2026, with a redemption price of 103.750% of the principal amount, plus accrued interest.

The redemption is dependent on Bombardier successfully completing a new offering of debt securities totaling at least US$500 million before the May 19, 2026 redemption date. However, Bombardier retains the discretion to delay or waive this condition. Funds for the redemption will come from the new debt issuance and existing cash reserves.

This financial move comes as Bombardier continues to focus on its core business of manufacturing business aircraft. The company has undergone significant restructuring in recent years to strengthen its financial position and streamline operations.

Bombardier's strategy involves consolidating its market presence in the business jet sector and improving operational efficiency. The redemption of these notes appears to be a step toward optimizing its capital structure and reducing financing costs.

The company has provided details for the paying agent, Deutsche Bank Trust Company Americas, for parties holding the 2029 Notes who wish to proceed with the redemption on the specified date.