Bombardier Prices New 5.875% Senior Notes Due 2035

Bombardier Inc. announced it has priced an offering of US$500 million in new senior notes due 2035. The notes will bear an annual interest rate of 5.875% and were sold at par, with the transaction expected to close on or about May 15, 2026, subject to customary conditions.

The aircraft manufacturer intends to use the net proceeds from the issuance, along with existing cash, to fund the repayment and retirement of outstanding indebtedness. This includes the redemption of all of its US$750 million in outstanding 7.50% senior notes due 2029. Associated fees and expenses will also be covered.

Both the closing of the new note offering and the redemption of the 2029 notes are contingent on market and other conditions, and there can be no assurance they will be completed as planned. The redemption of the 2029 notes is specifically subject to conditions including the successful completion of the new note offering.

This debt transaction comes as Bombardier continues to focus on its core business of designing, manufacturing, and servicing business aircraft, aiming to optimize its financial structure and reduce interest expenses.