Bombardier said Thursday, Feb. 19, 2015 that it will raise C$750 million (about US$600 million) through the sale of 339.4 million subscription receipts to a syndicate of underwriters, in order to raise US$2.1 billion to stabilize its financial status.
The move comes as Bombardier struggles to finance the final development of its C Series jet amid debt issues and weak regional aircraft sales. Unlike the aerospace sector, Bombardier's rail sector is not seen as immediately problematic.
Bombardier has for now eliminated its B-class stock dividend. Members of the Bombardier family control the company through ownership of A-class shares.
Pierre Beaudoin, grandson of the company's founder, is stepping down as CEO and president, replaced by Alain Bellemare. Beaudoin, named CEO in 2008, retains his position as executive chairman.
Quebec's economy minister has said the province stands ready to provide financial assistance to Montreal-based Bombardier Inc. if its balance sheet deteriorates, reflecting the company's economic importance to the province.
"We have money available to finance Bombardier customers. If Bombardier needs that money for its liquidity, we can work with them on that," Jacques Daoust told local media Wednesday, Feb. 18. A Bombardier spokesman said the company has not solicited the province for assistance.