Bombardier, Inc.-Ord Shs (OTCMKTS:BDRBF) has decided to update its stakeholders with couple of important financial updates. The first update is regarding senior notes. According to reports, Bombardier has finished the pricing of senior notes worth US$2.25 billion aggregate principal amount. The second financial update is regarding execution of equity public offering of Cdn$1.1 Billion.
Insights On The Matter:
The issuance of senior notes is one of the largest activities executed by Bombardier in the near past. Principal amount of US$2.25 billion comprises of two categories: first category includes senior notes of the company worth US$750 million due September 15, 2018. These senior notes carry a coupon rate of 5.50% per annum and will be sold by the company at par. The second category includes senior notes worth US$1.5 billion with a due date of March 15, 2025. These notes carry a coupon rate of 7.50% per annum and will be sold at par by the company. As per the reports, the issuance of these notes is expected to close on or before March 13, 2015, subject to various customary and regulatory conditions.
In another announcement, the company closed the previously announced public offering of 487 million subscription receipt. The price per subscription receipt was kept Cdn$2.21, which made the total transaction worth close to Cdn$1.1 billion. The total gross proceeds included the proceedings from 63.63 subscription receipts, which were sold under the over-allotment option of the underwriters. As per the reports, these receipts were subscribed 100% in the first time only. The offering was underwritten by a group of underwriters headed by National Bank Financial Inc., CIBC and Citigroup Global Markets Canada Inc., and UBS Securities Canada Inc. The subscription began on Friday, February 27, 2015 under the ticker name TSX-BBD.R.
Management of the company seeks to execute such transactions from time to time.