Plane and train maker Bombardier raising $638.4 million in share offering - NEWS 95.7
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Plane and train maker Bombardier raising $638.4 million in share offering

Last Updated Mar 6, 2018 at 9:40 am ADT

In this Monday, Oct. 19, 2015, file photo, a worker walks in front of a sign at Boeing's 737 delivery center at Boeing Field in Seattle. Bombardier Inc. is raising $638.4 million in an offering of shares as the company continues to turnaround plan. THE CANADIAN PRESS/AP-Ted S. Warren

MONTREAL – Bombardier Inc. is raising $638.4 million in an offering of shares as the company continues its turnaround plan.

The plane and train maker has signed a deal with a syndicate of underwriters who have agreed to purchase 168 million class B Bombardier shares at a price of $3.80 per share on a bought deal basis.

The underwriters have also been granted an overallotment option for up to an additional 25.2 million class B shares. If the option is exercised in full the financing will grow to $734.1 million.

Bombardier shares closed at $4 on the Toronto Stock Exchange on Monday.

Shares in the company have surged in recent months, helped by improved results and a win in its trade fight with Boeing.

The U.S. International Trade Commissioners voted 4-0 in January that Boeing didn’t suffer harm from prospective imports of C Series planes.

Companies in this story: (TSX:BBD.B)

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