Bombardier, Inc. (OTCMKTS:BDRBF) is seeing a bit of buying pressure in early morning session on Tuesday.
Market Reaction:
As of 10:36, BDRBF stock moved up 0.81% to $0.871 with more than 211K shares, compared to its average volume of 2.02 million shares. The stock has moved within a range of $0.8200 – 0.8880 after opening the trade at $0.888
Major Trigger:
Bombardier Announces Closing of its New Issuance of Senior Notes
Key Highlights:
- announced that it has successfully closed its previously announced offering of US$1,200,000,000 aggregate principal amount of Senior Notes due June 15, 2026 (the “New Notes”). The New Notes carry a coupon of 7.125% per annum and were sold at 100.000% of par.
- Bombardier intends to use the net proceeds of this offering of Notes to finance its previously announced tender offer (the “Tender Offer”) for (i) 5.750% Senior Notes due 2022 (the “5.750% 2022 Notes”), (ii) 6.000% Senior Notes due 2022 (the “6.000% 2022 Notes”) and (iii) 6.125% Senior Notes due 2023 (the “2023 Notes” and together with the 5.750% 2022 Notes and the 6.000% 2022 Notes, the “Subject Notes”) and to pay related fees and expenses. Bombardier intends to use the remaining net proceeds from this offering of Notes for general corporate purposes, including the repayment and/or retirement of other outstanding debt.
Key Quote
Speaking about the deal, Chris Terkelsen, Co-founder of TracTrac, said: “We’ve been seeing huge growth in more challenging racing events, far beyond the shoreline; we knew that to deliver reliable tracking for these longer races further offshore, we needed our system to include satellite technology.”
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