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

MONTRÉAL, QUÉBEC—(Marketwired – March 13, 2015) – Bombardier Inc. (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) announced today that it has successfully closed its issuance 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 were 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 were sold at par (the “2025 Notes,” and together with the 2018 Notes, the “Notes”).

Bombardier has deposited into escrow with Computershare Trust Company, N.A., acting as escrow agent, cash (including the net proceeds of the offering of the Notes) in an amount equal to the aggregate principal amount of the 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 date hereof to, but not including, the third business day following April 30, 2015 (the “Escrowed Funds”). Subject to the release to Bombardier of the net proceeds from Bombardier’s previously announced issuance and sale of subscription receipts (the “Escrow Release Condition”), which closed on February 27, 2015, the Escrowed Funds will be released to Bombardier. In the event that the Escrow Release Condition is not satisfied by 5:00 p.m. (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.