MONTREAL: Bombardier Inc, has successfully closed the previously announced three-year $1.0 billion senior secured term loan facility, a news release said.
HPS Investment Partners, LLC, acted as administrative agent, collateral agent and the lead lender for a group that included investment funds and accounts managed by HPS Investment Partners, LLC and Apollo Capital Management, L.P., or their respective affiliates, and Special Opportunities and Direct Lending funds managed by Ares Management LLC.
The Facility will have a minimum utilization of $750 million and a term of three years. Bombardier will have the right to voluntarily prepay the outstanding amount of the Facility. In addition, the completion of the sale of Bombardier Transportation will require Bombardier to make an offer to repay 50% of the then outstanding principal amount of the Facility.
Drawings under the Facility will bear interest at an agreed margin over the ABR (Alternate Base Rate) and LIBOR (London Inter-bank Offered Rate) reference rates and will be secured by a security interest in certain aviation inventory and related accounts receivable. There are no financial covenants under the Facility.
With nearly 60,000 employees across two business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in over 25 countries across the segments of Aviation and Transportation. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2019, Bombardier posted revenues of $15.8 billion.