Bombardier (TSX: BBD.A) (TSX: BBD.B) (OTCQX: BDRBF) has entered into a definitive agreement for a USD1.0 billion US investment by the Government of Quebec in a newly created limited partnership for the C Series Aircraft limited partnership to which the assets, liabilities and obligations of the C Series aircraft program (CSALP) will be transferred, the company said.
Bombardier will hold 50.5 percent equity stake in the partnership and Investissement Quebec will hold 49.5 percent. The USD1.0 billion investment is to be disbursed in two USD500M US installments on June 30, 2016 and September 1, 2016. The investment has been approved by Bombardier´s board of directors and the cabinet of the Government of Quebec and remains conditional upon the satisfaction of other customary conditions. The US investment is expected to be used entirely for cash flow purposes of the CSALP.
Bombardier is a manufacturer of both planes and trains. The company is headquartered in Montreal, Canada. In the fiscal year ended December 31, 2015, the company posted revenues of USD18.2 billion.