09:08 AM EDT, 03/22/2024 (MT Newswires) -- Bombardier Inc. (BBD-A.TO, BBD-B.TO) on Friday announced that it has launched an offering of US$500 million aggregate principal amount of new Senior Notes due 2031.

Proceeds of the offering of the new notes, with cash on hand, will be used (i) to finance the offer to purchase up to US$400 million aggregate purchase amount (exclusive of accrued and unpaid interest) of its outstanding 7.125% Senior Notes due 2026, of which there is US$1 billion aggregate principal amount outstanding, (ii) to fund the redemption of US$100 million aggregate purchase amount (exclusive of accrued and unpaid interest) of its outstanding 7.875% Senior Notes due 2027, of which there is US$1.73 billion principal amount outstanding, and (iii) for the payment of accrued interest and related fees and expenses.

Separately, Bombardier announced the commencement of a tender offer to purchase for cash up to US$400 million aggregate purchase price (exclusive of accrued and unpaid interest) of its outstanding 7.125% senior notes due 2026. The Tender Offer will be financed, together with cash on hand, by the amounts raised in Bombardier's offering of new Senior Notes.

The Tender Offer will expire at 5:00 p.m. New York City time, on April 19.