bombardier launches 400 million bond
Amsnow
The leading Canadian manufacturer of aircraft, trains, snowmobiles, ATVs and personal watercraft, Bombardier Inc announced on Tuesday (August 19) that it launched a$400 million asset-backed bond in the United States. The company said it was supported by dealer floor plan receivables.
According to Reuters news services, a souce close to the deal said it was "well received by the market."
Bombardier spokeswoman Dominique Dionne said "It's not new money that will go in our cash flow."
The issue will help its financing arm, Bombardier Capital, raise money to finance its own lending to dealers of snowmobiles, watercraft and all-terrain vehicles. The new bonds are not part of Bombardier's restructuring effort of the past months.
The company's recreational products division is also up for sale, and Bombardier expects to close the deal before the end of the summer. The founding Bombardier family is part of a consortium bidding for the snowmobile and watercraft division.
From various news services including Reuters.