- Bombardier (TSX:BBD.B) stock rallied in early Monday trading on news it has let its cash tender offer for certain outstanding senior notes expire
- The Canadian business jet manufacturer announced that its cash tender offer of US$550 million aggregate purchase price of its outstanding 7.12 per cent senior notes due 2026, had lapsed
- The notes amount to US$195,000, which, together with the US$496.5 million aggregate principal amount of notes that were previously tendered earlier this month, represent 49.62 per cent of the aggregate principal amount of the notes outstanding prior to the tender offer
- Bombardier stock opened trading at C$57.10 per share
Bombardier (TSX:BBD.B) stock rallied in early Monday trading on news it has let its cash tender offer for certain outstanding senior notes expire.
The Canadian business jet manufacturer announced that its cash tender offer of US$550 million aggregate purchase price of its outstanding 7.12 per cent senior notes due 2026, had lapsed.
Senior notes, a type of bond that have priority over other debts, are a common way for companies to borrow money with lower interest than other kinds of debt. While they have a lower degree of risk compared with stocks, senior notes often also pay lower rates of interest. When notes are redeemed for company shares, they reduce the businesses’ debt obligations.
The notes amount to US$195,000, which, together with the US$496.5 million aggregate principal amount of notes that were previously tendered earlier this month, represent 49.62 per cent of the aggregate principal amount of the notes outstanding prior to the tender offer. US$504.2 million of notes will remain outstanding upon completion of the offer.
Under the terms of the offer, all additional tendered notes will be accepted for purchase by the company on the final settlement date on Wednesday.
The company will publish its Q1 2024 financial results Thursday, the same day as its Annual General Meeting of Shareholders.
Montreal-based Bombardier designs, manufactures and services business jets, including the Global and Challenger aircraft families. The company has a worldwide fleet of more than 5,000 aircraft in service across multinational corporations, charter and fractional ownership providers, governments and private individuals.
Bombardier stock (TSX:BBD.B) opened trading nearly 0.80 per cent higher at C$57.10 per share. Though it has given back nearly 16 per cent year-over-year, it has risen more than 2,300 per cent over the past five years.
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