Bombardier Announces Agreement to Sell Bombardier Capital's Inventory Finance Division.MONTREAL -- Bombardier (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BBD BBD In currencies, this is the abbreviation for the Barbados Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. .MV.A)(TSX:BBD.SV.B) today announced an agreement to sell Bombardier Capital's Inventory Finance Division to GE Commercial Finance for cash proceeds of approximately $825 million US payable at closing and subject to customary adjustments. Bombardier Capital's inventory finance business is comprised of trade receivables in the marine, recreational products, recreational vehicles and manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected industries. The price represents a gross pre-tax premium of $225 million US over the $2.2 billion US book value of the inventory financing Inventory financing Used in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan. assets being sold and the related securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. floor plan debt and other net liabilities of the inventory financing portfolio. GE Commercial Finance will also assume, after closing, the future servicing obligations of Bombardier Capital under current public securitizations. As a result of this transaction, Bombardier Capital will reduce the recorded debt and other net liabilities related to the inventory financing business by approximately $1.6 billion US. Some 280 employees based in Colchester, Vermont and Brossard, Quebec will be transferred to GE Commercial Finance. The sale is subject to obtaining the consent of regulatory authorities and fulfilment of other customary conditions. This transaction is the continuation of Bombardier Capital's orderly portfolio wind-down, initiated in 2001, and is in line with Bombardier's objective of maximizing shareholder value. Bombardier Capital will continue its activities of interim financing Interim financing A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing. interim financing The financing that supports a transaction until permanent financing can be arranged. , as well as the orderly and timely wind-down of the remaining portfolios, including railcar leasing. GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $230 billion US and is headquartered in Stamford, Connecticut, USA. General Electric (NYSE NYSE See: New York Stock Exchange : GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. For more information, visit www.ge.com. About Bombardier A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2005 were $15.8 billion US and its shares are traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (BBD). News and information are available at www.bombardier.com. Bombardier Inc. (TSX:BBD.MV.A) (TSX:BBD.SV.B) |
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