Bombardier Announces Share Conversion Privilege and
Dividend Rate Reset of Series 2 Preferred Shares
MONTREAL, QUEBEC--JUNE 19, 2002 - 09:18 EDT
Bombardier Inc. announced today the conversion
privilege and dividend rate reset for holders of its Series 2
Preferred Shares in accordance with the terms applicable to those
shares.
Holders of Bombardier Inc. Series 2 Preferred Shares have the
right to convert all or part of their shares, effective on Aug.
1st, 2002, on a one-for-one basis, into Series 3 Preferred Shares,
provided that a minimum number of Series 2 Preferred Shares are
tendered for conversion. Holders who do not convert their shares
will retain their Series 2 Preferred Shares and, starting on Aug.
1st, 2002, will receive, in lieu of the existing quarterly fixed
rate dividend, a floating dividend equal to a percentage
(initially 80%) of the prime rate, subject to certain adjustments,
in accordance with the terms of such shares, as and when declared
by the Board of Directors of Bombardier Inc. Holders will have
the opportunity to convert their shares again on Aug. 1st, 2007
and every five years thereafter.
As of Aug. 1st, 2002, the Series 3 Preferred Shares will pay on a
quarterly basis, as and when declared by the Board of Directors of
Bombardier Inc., a fixed cash dividend for the following five
years based on a fixed rate equal to 115% of the yield on
five-year non-callable Government of Canada bonds determined at
July 11, 2002. The annual dividend rate for the Series 3
Preferred Shares will be published on July 15, 2002 in several
newspapers. Holders of Series 2 Preferred Shares will receive a
notice summarizing their conversion right.
Bombardier Inc., a diversified manufacturing and services company,
is a world leading manufacturer of business jets, regional
aircraft, rail transportation equipment and motorized recreational
products. It also provides financial services and asset management
in business areas aligned with its core expertise. Headquartered
in Montreal, Canada, the Corporation has a workforce of some
80,000 people in 24 countries throughout the Americas, Europe and
Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2002
stood at $21.6 billion Cdn. Bombardier shares are traded on the
Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and
BBDd.F). |
