Bombardier Inc. has successfully completed the redemption of its 7.35% debentures due in 2026, a move that settles the $150 million CAD in outstanding principal for that series. This transaction, finalized on June 26, 2026, marks the latest step in the company’s effort to deleverage its balance sheet and lower annual interest expenses.
Impact of the Debt Redemption
According to an official statement from Bombardier, the company has reduced its long-term debt by approximately $6.1 billion since 2020. This reduction has lowered the firm’s interest payments by more than $460 million on an annualized basis.
Bart Demosky, the chef de la direction financière of Bombardier, noted that the latest $150 million CAD redemption brings total debt reduction for this year to over $1.1 billion. By retiring these debentures, Bombardier has cleared its debt maturity schedule until November 2030. The company maintains a stated objective of achieving a ratio of adjusted net debt to adjusted EBITDA of approximately 1.5x over time.
How the Transaction Was Executed
The redemption process was managed through the Services de dépôt et de compensation CDS Inc. system. As outlined in the company’s April 30, 2026, announcement, the redemption price was settled in accordance with the established procedures for the debentures due in 2026.
The company clarified that this announcement is not an offer to sell or a solicitation of an offer to buy any securities. Furthermore, the securities involved were not registered under the United States Securities Act of 1933, nor were they qualified for public distribution under Canadian securities laws, meaning they could only be traded under specific prospectus exemptions.
Bombardier’s Financial Strategy
The company’s focus remains on its next phase of growth. With no échéance before November 2030, the firm is positioning itself to focus fully on its next phase of growth and accelerate it.
Key Takeaways
- Debt Reduction: Bombardier has reduced long-term debt by approximately $6.1 billion since 2020.
- Interest Savings: The company has reduced interest payments by more than $460 million on an annualized basis.
- Maturity Profile: Following this redemption, the company has no échéance before November 2030.
- Target Metric: Management continues to target an adjusted net debt to adjusted EBITDA ratio of approximately 1.5x.
For further information regarding these financial activities, stakeholders may contact Francis Richer de La Flèche, Vice-président, Planification financière et relations avec les investisseurs, or Mark Masluch, Directeur principal, Communications at Bombardier.
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