MONTRÉAL, May 18, 2023 (GLOBE NEWSWIRE) — Bombardier Inc. (TSX: BBD.B) (“Bombardier” or the “Corporation”) confirmed today that its previously announced new normal course issuer bid (the “NCIB”) will commence on May 23, 2023, following the early termination of its current normal course issuer bid. The Toronto Stock Exchange (the “TSX”) has approved Bombardier to purchase, from May 23, 2023 to May 22, 2024, up to 600,000 of its Class B shares (subordinate voting) under the NCIB, representing approximately 0.72% of the 82,986,942 Class B shares (subordinate voting) issued and outstanding as of May 10, 2023 (such number being net of 3,704,417 Class B shares (subordinate voting) held in the Employee Benefit Trust (as defined hereinafter) as of May 10, 2023). The Corporation’s current normal course issuer bid commenced on June 28, 2022 for a 12-month period that would have ended June 27, 2023 (the “2022 NCIB”) for a maximum of 880,000 Class B shares (subordinate voting). The maximum amount of shares under the 2022 NCIB have been purchased. As permitted by the TSX, the 2022 NCIB will terminate early on May 22, 2023, the day prior to the effective date of the new NCIB.
Under the rules of the TSX, the Corporation may generally purchase a maximum of 5% of its issued and outstanding Class B shares (subordinate voting) over a 12-month period pursuant to a normal course issuer bid (the “5% Annual Limit”). As a result of the 2022 NCIB’s early termination, the Corporation must include the number of Class B shares (subordinate voting) purchased under the 2022 NCIB within the 5% Annual Limit for the new NCIB. As the Corporation intends to purchase up to 600,000 Class B shares (subordinate voting) pursuant to the new NCIB, these shares, together with the 880,000 Class B shares (subordinate voting) purchased under the 2022 NCIB, represent approximately 1.78% of the 82,986,942 Class B shares (subordinate voting) issued and outstanding as of May 10, 2023 (such number being net of 3,704,417 Class B shares (subordinate voting) held in the Employee Benefit Trust as of May 10, 2023, which must be subtracted from the total issued and outstanding Class B shares (subordinate voting) of the Corporation for the purpose of calculating the 5% Annual Limit, as per the rules of the TSX).
All Class B shares (subordinate voting) purchased under the NCIB will either be cancelled or delivered to a trustee to satisfy future obligations under the Corporation’s employee share-based incentive plans. Class B shares (subordinate voting) purchased under the NCIB will be cancelled if purchased in order to mitigate the dilutive effect of granting stock options under the Corporation’s stock option plan, which are settled with Class B shares (subordinate voting). Otherwise Class B shares (subordinate voting) purchased under the NCIB will be placed in trust with Computershare Trust Company of Canada (“Computershare Canada”) pursuant to the Amended and Restated Employee Benefit Plans Trust Agreement entered into on August 6, 2015 between the Corporation and Computershare Canada, as amended, (the “Employee Benefit Trust”) which Class B shares (subordinate voting) held in trust will eventually be used to settle the Corporation’s obligations under certain of its employee share-based incentive plans, including its performance share unit plan and its restricted share unit plan. Of the up to 600,000 Class B shares (subordinate voting) that may be purchased under the NCIB, the Corporation currently anticipates that approximately 85,800 of such shares would be cancelled and the balance of such shares would be placed in trust with Computershare Canada.
About Bombardier
Bombardier (BBD-B.TO) is a global leader in aviation, focused on designing, manufacturing, and servicing the world’s most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance, and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in government and military special-mission roles leveraging Bombardier Defense’s proven expertise.
Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China and Australia.