Bombardier, Inc.-Ord Shs (OTCMKTS:BDRBF) intends to update its stakeholders with some of the significant updates. The first update is related with senior notes. As per the reports, the company has concluded the pricing process of senior notes valued at US$2.25 billion ‘aggregate’ principal amount. The next update is associated with the execution of equity public offering worth Cdn$1.1 Billion.
The issuance of ‘Notes’ is one of the major activities completed by Bombardier in the recent past. Principal amount of US$2.25 billion is formed of two categories. The first part covers senior notes of the Bombardier valued at US$750 million and due on September 15, 2018. They carry a ‘coupon rate’ of 5.50% per annum. The company plans to sell them at par.
The second group covers senior notes valued at US$1.5 billion and has a due date of March 15, 2025. They have a coupon rate of 7.50% per annum. The second category of notes will also be sold at par. the issuance of notes is expected to conclude on or before March 13, 2015, depending upon various customary and regulatory conditions.
The other news
In unrelated news, Bombardier said that it closed the previous public offering of 487 million ‘subscription receipt’. The company decided the price per receipt at Cdn$2.21. The total transaction value was close to Cdn$1.1 billion. The underwriters used the over-allotment option and sold additional 63.63 subscription receipts.
The public offering of receipts was huge success as they were subscribed fully in the first time only. The group of underwriters was headed by National Bank Financial Inc., and Citigroup Global Markets Canada Inc. It also included CIBC and UBS Securities Canada Inc. The subscription of public offering commenced on February 27, 2015 under the symbol name ‘TSX-BBD.R.’ In last trading session, Bombardier stocks surged more than 2% to close at $2.04.