Bombardier redeems $788m in senior notes

Canadian aerospace manufacturer Bombardier announced that it has successfully completed the redemption of a portion of its outstanding senior notes.

The company repurchased a total of $788m, consisting of $338m senior notes of 7.125% due in 2026 and $450m of 7.875% due in 2027.

Bombardier had previously issued notices of partial redemption for these notes on May 21, 2024. The redemption process, including the payment and surrender of the notes, is being handled through the Depository Trust Company.

Earlier this month, Bombardier announced the successful closing of its previously announced offering of senior notes raising a total of $750m with these notes maturing in 2032 carrying an interest rate of 7.00% per year.

The company said that it plans to use the proceeds from this offering, along with existing cash reserves, to pay off some of its existing debt including the $338m and $450m in today.

Bombardier has been on a deleveraging drive to improve its balance sheet.

Acknowledging the actions taken by the company, credit ratings agency S&P Global upgraded the Canadian business jet maker Bombardier’s credit rating to ‘B+’ from ‘B’ citing continued progress on reducing debt and a stable business outlook.