The announcement comes just days after the company announced better-than-expected results for the third quarter.

The company’s tender offer said that it will purchase for cash up to $110m of its outstanding notes. Further breakdown showed Bombardier’s intentions to purchase $75m of its 7.125% senior notes due in 2026, whereas it plans to purchase the remainder $35m of its 7.875% senior notes due in 2027.

The tender offer is set to expire at 5pm on December 6th, 2023. The cumulative principal outstanding for 2026 notes is $1.2bn and $1.892bn for the 2027 notes.

Bombardier said the offer will be financed through a new $500m senior notes issue.

The company said: “… it has issued a conditional notice of redemption for all of its outstanding 7.50% Senior Notes due 2025 … the redemption date is December 6th, 2023, and the redemption price is 100% of the principal amount redeemed, plus accrued and unpaid interest.

“The redemption of the Notes is subject to and conditioned upon Bombardier completing a new offering of debt securities in the aggregate principal amount of not less than US$500 million before the Redemption Date; however, Bombardier may delay or waive this condition in its sole and absolute discretion.”

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The OEM has been restructuring its debt over the last few years, having reduced it by more than $4.5bn, or 45%, since 2020.

The debt repayment marked “an important milestone” and demonstrated “continued commitment to strengthening the balance sheet” according to Bart Demosky, executive vice president and CFO, Bombardier. He said that this translates into a “significantly improved credit risk profile”, adding that the average maturity of the firm’s long-term debt is now 4.7 years with annual interest charges reduced by more than $330m since 2020.

In January, Bombardier closed an offering of $750m senior notes due February 1st 2029, which carried a coupon rate of 7.5% per year. The company previously issued more than $2bn in senior notes in March 2019 at a comparatively high-yield to finance tender offers that were due in 2020 and 2021.

Bombardier is set to provide further updates on its capital structure and strategic progress during its Investor Day this week.

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