The Bombardier Inc (OTCMKTS:BDRBF) stock has jumped by 3% this morning after the company announced that it has been successful in closing the offering worth $1,200,000,000 in principal amount of its senior notes.
The offering had been announced previously by Bombardier and the notes were due on June 15, 2021. It should be noted that the new notes are going to have a coupon worth 7.12% per year.
The company is going to use the money raised from these senior notes for a range of tender offers related to senior notes that are due at different times. However, the remaining cash is going to be used by the company for meeting general corporate expenses, which is also going to include the repayment of debts. The proceeds could also be used to retire some of the debts. It will be interesting to see how investors react to the latest developments regarding Bombardier.