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Bombardier To Issue About US$500 Mln Of Equity

Bombardier (BBD_B.TO,BBD_A.TO) said that it has entered into an agreement with a syndicate of underwriters, led by Credit Suisse Securities (Canada), Inc., National Bank Financial Inc., UBS Securities Canada Inc. and TD Securities Inc. under which they have agreed to purchase on a bought deal basis from Bombardier 168,000,000 Class B shares of Bombardier at a purchase price of C$3.80 per Class B Subordinate Voting Share.

Bombardier has also granted the Underwriters an option to purchase up to an additional 25.20 million Class B Subordinate Voting Shares at any time up to 30 days after closing of the Offering. Closing of the Offering is expected to occur on or about March 23, 2018, subject to customary closing conditions, including receipt of stock exchange approval.

The Offering will result in gross proceeds of C$638.4 million to Bombardier or about C$734.1 million if the Underwriters' overallotment option is exercised in full.

Bombardier said it intends to use the net proceeds of the Offering to supplement its working capital and for general corporate purposes, consistent with Bombardier's continued proactive approach to capital management.

As it executes its five-year turnaround plan, the net proceeds from the Offering will increase Bombardier's cash position, thereby building further operational flexibility and re-equitizing the balance sheet. Bombardier's turnaround plan remains on track, focusing on the execution of growth initiatives, with a goal to create long-term shareholder value.

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