MONTREAL, QUEBEC -- (Marketwired) -- 02/11/16 -- (All amounts in this press release are in U.S. dollars unless otherwise indicated.)
Bombardier (TSX: BBD.A)(TSX: BBD.B)(OTCQX: BDRBF) closed today the previously-announced acquisition by CDPQ of a $1.5 billion convertible share investment inBombardier Transportation's newly-created holding company, Bombardier Transportation (Investment) UK LTD ("BT Holdco"), which, following the completion of the previously-announced corporate reorganization, owns all of the assets of Bombardier's Transportation business segment.
This transaction crystallizes the value of Bombardier Transportation and strengthens Bombardier's financial position, with no increase in debt. The funds received by BT Holdco from the acquisition will be distributed to Bombardier, which intends to use the proceeds for general corporate purposes.
Furthermore, concurrently with the closing of the acquisition of a 30% stake in BT Holdco and, as previously announced, Bombardier has issued today to CDPQ warrants exercisable for a total number of 105,851,872 Class B shares (subordinate voting) in the capital of Bombardier. The warrants are exercisable for a period of seven years from the date hereof at an exercise price per share equal to $1.66, being the U.S. dollar equivalent of $2.21 Cdn at the date of execution of the subscription agreement.