Bombardier confirmed the closing of the previously announced sale of its transportation business to Alstom.
Total income to suppliers after deduction of debt-like items and transferred liabilities amounts to US $ 6 billion.
Headquartered in Montreal, Canada, Bombardier is present in more than 12 countries, including its production / engineering sites and its customer service network.
The corporation supports a global fleet of approximately 4,900 aircraft in service with a wide variety of multinational companies, charter and fractional ownership providers, governments and individuals.
After deducting the capital position of the Caisse de dépôt et placement du Québec of $ 2.5 billion, transaction costs, and including the impact of closing adjustments and obligations related to achieving a minimum cash balance at Bombardier Transportation By the end of 2020, Bombardier expects net revenue of approximately $ 3.6 billion.
This amount includes 488 million cash from the capital redemption and a 125 million loan repayment from the transportation business, settled together with the closing of the transaction.
Also net income includes approximately 600 million Alstom shares (€ 500 million representing 11.5 million shares at a fixed subscription price of € 43,465 per share), monetizable from the end of April 2021.
“With this transaction now complete, Bombardier begins an exciting new chapter focused exclusively on the design, construction and maintenance of the world’s best commercial aircraft,” said Eric Martel, president and CEO of Bombardier Inc.
Revenues from the transaction were lower than previous estimates as a result of lower-than-expected cash generation from the Transportation business in the fourth quarter due in part to unfavorable market conditions, as well as disagreements between parties in as for certain adjustments that Bombardier intends to challenge.
Proforma net debt is approximately $ 4.7 billion, which includes long-term debt of $ 10.1 billion, net of 1.8 billion cash on hand at Bombardier Inc. (excluding Transportation) as of December 31, 2020, and the approximately 3,600 million of revenues from the sale of the Transportation business.