Bombardier Announces Dividend Rate Applicable to its
Series 3 Preferred Shares
MONTREAL, QUEBEC--JULY 11, 2002 - 11:46 EDT
Bombardier Inc. will, on August 1, 2002, issue
Cumulative Redeemable Preferred Shares, Series 3 if holders of at
least one million of its Cumulative Redeemable Preferred Shares,
Series 2 elect to convert such shares into Series 3 Preferred
Shares. In such a case, as of August 1, 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 that will be based on a
fixed rate equal to the product of: (a) the average of the yields
to maturity compounded semi-annually, designated on July 11, 2002
by National Bank Financial Inc. and Scotia Capital Inc., that
would be carried by Government of Canada bonds if they had been
issued on July 11, 2002 with a 5-year maturity, multiplied by (b)
a percentage rate determined by Bombardier Inc.
The percentage rate determined by Bombardier Inc. is 115%. The
Government of Canada Yield is 4.762%. Accordingly, the annual
dividend rate applicable to the Series 3 Preferred Shares for the
period of five years beginning on August 1, 2002 will be 5.476%.
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). |
