- Bombardier (TSX:BBD.A) is offering US$500 million in new senior notes due in 2031
- The company returned to profitability in 2023, two years after selling its train business to Alstom for US$3.6 billion
- Bombardier is a global leader in the design, manufacturing and servicing of business jets, with a global fleet of approximately 5,000 aircraft in service
- Bombardier stock is down by 4.88 per cent year-over-year, and has lost 14.68 per cent over the past five years
Bombardier (TSX:BBD.A) is offering US$500 million in new senior notes due in 2031.
The company intends to allocate the proceeds from the new notes, supplemented by cash on hand, to:
- An offer to purchase up to US$400 million of its outstanding 7.125 per cent senior notes due in 2026, of which a little more than US$1 billion aggregate principal amount is outstanding to date
- The redemption of US$100 million of its outstanding 7.875 per cent senior notes due in 2027, of which US$1.73 billion aggregate principal amount is outstanding to date
- The payment of accrued interest and related fees and expenses
The new notes offering, 2026 tender offer and 2027 notes redemption are subject to market conditions, meaning Bombardier may not complete the transactions as described above.
Bombardier’s recent financial performance
Since getting out of the train business in 2021 to focus exclusively on business jets, Bombardier has grown annual revenue by 25 per cent and returned to profitability.
The company posted more than US$8 billion in sales in 2023, including net income of US$445 million and adjusted earnings per share of US$3.94 (up 412 per cent year-over-year), thanks to higher deliveries and record-setting business jet aftermarket revenues.
It expects growth to continue in 2024 and 2025 with guidance for lower debt and higher revenue, adjusted EBITDA and free cash flow, as it works through a strong US$14.2 billion multi-year backlog.
About Bombardier
Based in Montreal, Bombardier is a global leader in the design, manufacturing and servicing of business jets. The company has a global fleet of approximately 5,000 aircraft in service across multinational corporations, charter and fractional ownership providers, governments and private individuals. Bombardier aircraft are also deployed in defense roles across the globe.
Bombardier stock (TSX:BBD.A) last traded at C$58.87 per share. The stock is down by 4.88 per cent year-over-year, and has lost 14.68 per cent over the past five years.
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