Bombardier reported that it has entered into an agreement with a syndicate of underwriters, led by Credit Suisse Securities (Canada), National Bank Financial, UBS Securities Canada and TD Securities (collectively “the Underwriters”) under which they have agreed to purchase on a bought deal basis from Bombardier 168,000,000 Class B shares (subordinate voting) of Bombardier (the Class B Subordinate Voting Shares) at a purchase price of Cdn$3.80 per Class B Subordinate Voting Share (the Offering). Bombardier has also granted the Underwriters an option to purchase up to an additional 25,200,000 Class B Subordinate Voting Shares at any time up to 30 days after closing of the Offering. Closing of the Offering is expected to occur on or about March 23, 2018, subject to customary closing conditions, including receipt of stock exchange approval.
The Offering will result in gross proceeds of Cdn$638.4m to Bombardier (or approximately Cdn$734.1m if the Underwriters’ over-allotment option is exercised in full). Bombardier intends to use the net proceeds of the Offering to supplement its working capital and for general corporate purposes, consistent with Bombardier’s continued proactive approach to capital management. As it executes its five-year turnaround plan, the net proceeds from the Offering will increase Bombardier’s cash position, thereby building further operational flexibility and re-equitizing the balance sheet. Bombardier’s turnaround plan remains on track, focusing on the execution of growth initiatives, with a goal to create long-term shareholder value.