Bombardier Doubles Bond Sale On Strong Demand for Junk Debt

  • Plane and train maker sold $2 billion of 8-year notes
  • Company will use proceeds to buy back securities due next year

Bombardier unveils its Global 7500 luxury jet at a December launch event in Montreal.

Photographer: Christinne Muschi/Bloomberg
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Bombardier Inc. doubled the sizeBloomberg Terminal of its offering as it sold debt in a red-hot junk-bond market to refinance a chunk of its $9.1 billion debt pile.

The manufacturer of planes and trains sold $2 billion of eight-year notes, compared with $1 billion initially planned, according to Bloomberg data. Bombardier is taking advantage of a resurgent junk-bond market and buoyed investor confidence in its balance sheet. The notes were priced to yield 8 percent.