DBRS Rates Bombardier’s Proposed New Issue at BB, Stable
DBRS has today assigned a BB rating, with a Stable trend, to the proposed issuance of at least $1 billion in senior unsecured notes (Notes) by Bombardier Inc. (BBD or the Company). The Notes are expected to be due in or before 2020. In a February 8, 2010, press release, DBRS had rated the previously planned (and similar) debt issuance by the Company, which was subsequently terminated due to unfavourable credit market conditions.
Proceeds from the issuance are likely to be used largely toward debt repayment, with no material change in the Company’s financial profile. BBD announced today that it has commenced a cash tender offer to purchase up to $550 million aggregate principal amount of its 6.75% Notes due 2012, 6.30% Notes due 2014, and Floating Rate Senior Notes due 2013. The Notes issuance and corresponding tender offer would enable BBD to extend its debt maturity profile by refinancing the aforementioned debt instruments with the new, longer maturity Notes. DBRS notes that the Company has the option to increase the tender offer to $1.0 billion.
Notes:
All figures are in U.S. dollars unless otherwise noted.
The applicable methodology is Rating Industrial Products Companies, which can be found on our website under Methodologies.
This is a Corporate rating.
Based on public information.
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