Bombardier (TSX: BBD.B) has reported it has secured a commitment for up to USD 1 billion in a three-year senior secured term loan from investment funds and accounts managed by JPS Investment Partners, LLC, the company said.
The facility is expected to be in place in the third quarter of 2020 and provides additional liquidity for working capital and general corporate purposes as Bombardier realigns production rates with current market conditions.
Bombardier will have the right to voluntarily prepay the outstanding amount of the Facility. In addition, the sale of Bombardier Transportation will result in a mandatory repayment of 50% of the then outstanding principal amount of the Facility.
Bombardier has retained National Bank Financial Inc. and Citigroup Global Markets Inc. as its financial advisors and Norton Rose Fulbright as its lead legal advisor. Latham & Watkins LLP acted as lead legal advisor to HPS Investment Partners, LLC.
Bombardier offers products and services that provide transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety. In the fiscal year ended December 31, 2019, Bombardier posted revenues of USD 15.8 billion.