06:31 AM EDT, 05/22/2024 (MT Newswires) -- Aircraft maker Bombardier (BBD-B.TO, BBD-A.TO) overnight Tuesday said it issued conditional notices of partial redemption for US$338 million ($461.4 million) of its outstanding 7.125% senior notes due 2026, and US$450 million of outstanding 7.875% senior notes due 2027.

For the 2026 notes, the redemption date is June 20 and the redemption price is 101.781% of the principal amount redeemed, plus accrued and unpaid interest.

For the 2027 notes, the redemption date is June 20 and the redemption price is 100% of the principal amount redeemed, plus accrued and unpaid interest. Each redemption is subject to and conditioned upon Bombardier completing a new offering of debt securities of not less than US$750 million before the redemption dates. The company, however, can delay or waive this condition.

In more company news, Bombardier priced its US$750 million offering of new senior notes due June 1, 2032. The new senior notes will carry a coupon of 7.000% per annum and will be sold at par. The offering is expected to close by June 5.

Bombardier plans to use the proceeds and cash on hand to fund the repayment of outstanding debt, including the senior notes coming due in 2026 and 2027, as well as to pay accrued interest and related fees and expenses.

At present, there is US$504 million principal amount outstanding of the 2026 notes and about US$1.43 billion principal amount outstanding of the 2027 notes.