Bombardier Announces Share Conversion Privilege and Dividend Rate Reset of Series 2 Preferred Shares.Business Editors MONTREAL--(BUSINESS WIRE)--June 19, 2002 Bombardier Inc. (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. .A)(TSX:BBD.B) announced today the conversion privilege conversion privilege See exchange privilege. and dividend rate reset for holders of its Series 2 Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. 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 The Government of Canada is the federal government of Canada. The powers and structure of the federal government are set out in the Constitution of Canada. In modern Canadian use, the term "government" (or "federal government") refers broadly to the cabinet of the day and 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 mo·tor·ize tr.v. mo·tor·ized, mo·tor·iz·ing, mo·tor·iz·es 1. To equip with a motor. 2. To supply with motor-driven vehicles. 3. To provide with automobiles. 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 Frankfurt Stock Exchange The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS. (BBD, BOM and BBDd.F). |
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