Bombardier has closed both a Letter of Credit and Revolver Facility agreement totalling $1.35 billion US with a syndicate of first quality financial institutions, mainly North American-based.
The $600 million US letter of credit and the $750 million US unsecured revolving credit facilities which mature in June 2014 are dedicated to supporting Bombardier Aerospace’s operations as well as the general needs of the Corporation. They replace two financial agreements: the $600 million US letter of credit facility which was to expire in December 2011 and the $500-million US unsecured revolving credit facility scheduled to mature in August 2011.
These new facilities meet Bombardier’s objectives of taking advantage of current favourable conditions, securing availability for letter of credit issuance and increasing its contingent liquidity at improved pricing. It also increased the Corporation’s liquidity by releasing the totality of the invested collateral related to the previous facility, amounting to $120 million US.
