Bombardier closed a previously announced three-year $1.0 billion senior secured term loan facility with HPS Investment Partners, acting as administrative agent, collateral agent and the lead lender for a group that included investment funds and accounts managed by HPS Investment Partners, and Apollo Capital Management, or their respective affiliates, and special opportunities and direct lending funds managed by Ares Management.
The facility will have a minimum utilization of $750 million and a term of three years. Bombardier will have the right to voluntarily prepay the outstanding amount of the facility. In addition, the completion of the sale of Bombardier Transportation will require Bombardier to make an offer to repay 50% of the then outstanding principal amount of the facility.
Drawings under the facility will bear interest at an agreed margin over the ABR and LIBOR reference rates and will be secured by a security interest in certain aviation inventory and related accounts receivable. There are no financial covenants under the facility.
