Bombardier Announces Pricing of its New Issuance of Senior Notes Due 2018 and Senior Notes Due 2025

Bombardier Inc. / Bombardier Announces Pricing of its New Issuance of Senior Notes Due 2018 and Senior Notes Due 2025 . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

MONTREAL, QUEBEC--(Marketwired - Feb 27, 2015) - Bombardier Inc. (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) today announced that it has successfully priced its offering of US$2.25 billion aggregate principal amount of new Senior Notes. The issuance is comprised of US$750 million aggregate principal amount of Bombardier's Senior Notes due September 15, 2018 which carry a coupon of 5.500% per annum and will be sold at par (the "2018 Notes"), and US$1.5 billion aggregate principal amount of Bombardier's Senior Notes due March 15, 2025 which carry a coupon of 7.500% per annum and will be sold at par (the "2025 Notes," and together with the 2018 Notes, the "Notes"). The issuance is expected to close on or about March 13, 2015, subject to customary closing conditions.

Bombardier will deposit, or direct the deposit of, cash in an amount equal to the aggregate principal amount of Notes, plus interest that is expected to accrue on the aggregate principal amount of the Notes as calculated in accordance with the terms of the indentures governing the Notes from the closing date of the issuance to, but not including, the third business day following April 30, 2015 (the "Escrowed Funds"), into escrow. Subject to the release to Bombardier of the net proceeds from the previously announced issuance and sale of subscription receipts of Bombardier pursuant to a prospectus supplement dated February 20, 2015 to Bombardier's short form base shelf prospectus dated February 18, 2015 (the "Escrow Release Condition"), the Escrowed Funds will be released to Bombardier. In the event that the Escrow Release Condition is not satisfied by 5:00pm (Montreal time) on April 30, 2015, the Notes will be subject to a special mandatory redemption.

Bombardier intends to use the proceeds of this offering to finance the redemption of all of Bombardier's outstanding 4.25% Senior Notes due January 2016 (the "2016 Notes") pursuant to an optional redemption promptly after the Escrowed Funds are released to Bombardier, to pay fees and expenses related to this offering and related transactions, and, as to the remainder, for general corporate purposes.