Bombardier (TSX:BBD.A)(TSX:BBD.B)(TSX:BBD.PR.B)(TSX:BBD.PR.D)(TSX:BBD.PR.C)(OTCQX:BDRBF) announced today that it has entered into an agreement with a syndicate of underwriters, led by Credit Suisse Securities (Canada), Inc., National Bank Financial Inc., UBS Securities Canada Inc. and TD Securities Inc. (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 approximately Cdn$638.4 million to Bombardier (or approximately Cdn$734.1 million if the Underwriters' overallotment 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.
A short form prospectus relating to the Offering will be filed with securities regulatory authorities in each of the provinces of Canada.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction. This press release does not constitute an offer to sell or the solicitation to buy securities in the United States. The securities mentioned herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.