Bombardier has priced its offering of $2 billion aggregate principal amount of new senior notes maturing in 2016 and 2023.
The issuance is comprised of $750 million aggregate principal amount of Bombardier's senior notes due 2016, which carry a coupon of 4.25% per annum and will be sold at par.
The $1.25 billion aggregate principal amount of Bombardier's senior notes due 2023, carry a coupon of 6.125% per annum and will be sold at par.
The 2016 notes have a maturity date of 15 January 2016, and the 2023 notes have a maturity date of 15 January 2023.
The issuance is expected to close on or about 14 January. Proceeds from the notes offer will be used for general corporate purposes.
Earlier this week Moody's Investors Service assigned a Ba2 rating to Bombardier's $1 billion proposed senior unsecured notes issue. Bombardier's existing Ba2 Corporate Family rating, Ba2 Probability of Default rating, Ba2 senior unsecured ratings and negative outlook remain unchanged as Moody's has already incorporated the potential notes issue in Bombardier's long term ratings and outlook.