Bombardier CS300 Test Flight
MONTREAL – TRANSPORTATION – Bombardier is moving forward. The company has reported that it is set to test flight the CS300 Aircraft next week.
Bombardier has announced that the has amended the terms of its previously announced bought deal equity offering to increase the size of the offering from Cdn$750 million to approximately Cdn$938 million (the “Upsized Offering”).
Under the terms of the Upsized Offering, a syndicate of underwriters, led by National Bank Financial Inc., UBS Securities Canada Inc., CIBC and Citigroup Global Markets Canada Inc. has agreed to purchase on a bought deal basis from Bombardier and sell to the public in Canada 424,209,000 subscription receipts (the Subscription Receipts) exchangeable for Class B shares (subordinate voting) of Bombardier (the Class B Subordinate Voting Shares) in the manner described below. Bombardier has also granted the underwriters an option to purchase up to an additional 63,631,350 Subscription Receipts or the underlying Class B Subordinate Voting Shares, as applicable, at any time up to 30 days after closing of the Upsized Offering. The Upsized Offering is subject to the receipt of all necessary regulatory and stock exchange approvals. Closing of the Upsized Offering is expected to occur on or about February 27, 2015. As part of the Upsized Offering, certain members of the Bombardier family have confirmed to Bombardier that they will, directly or through holding corporations controlled by them, place orders for Subscription Receipts for an aggregate investment amount equal to the Cdn$ equivalent of US$50 million.
Bombardier Commercial Aircraft has also announced that following a thorough inspection of the aircraft and a review of all the associated build documentation, Transport Canada inspectors have issued the flight permit that allows the first CS300 flight test vehicle to join the flight test program. Pending optimal weather conditions, the CS300 aircraft’s first flight is expected to occur during the period February 26 – 28, 2015. More precise timing will be confirmed approximately 48 hours prior. The aircraft is expected to perform a series of handling and system calibration tests, at a wide range of altitudes and speeds.
“This is an exciting time. The first four CS100 Flight Test Vehicles (FTVs) have flown more than 1,000 hours, test results are looking great and the CS300 aircraft will perform its maiden flight in the coming days,” said Rob Dewar, Vice President, CSeries Program, Bombardier Commercial Aircraft. “The success of the CSeries aircraft program is testament to the dedication and hard work of our partners, suppliers and in-house teams, and it has also benefitted greatly from the involvement of our customers.”
About CSeries Aircraft
Bombardier is creating the future with its CSeries aircraft — the only 100 per cent-new family of airliners specifically designed for the100- to 149-seat, single-aisle market. Benefitting from a clean-sheet design that includes leading-edge technology and systems integration, advanced materials and latest generation aerodynamics, the CSeries aircraft offer a 15 per cent* cash operating cost advantage, a 20 per cent* fuel burn advantage, exceptional operational flexibility, widebody comfort and an unmatched environmental and noise footprint.
The CS300 aircraft offers the best seat-mile cost in its category, making it the most profitable solution for mid-sized markets with up to 150 passengers per flight, and ideal for a range of routes from short-haul to longer transcontinental markets. With the extra capacity seating option, which provides up to 160 seats, the CS300 aircraft’s productivity further improves — offering airlines an average of four per cent* additional cash operating cost advantage per seat.
Bombardier has booked orders and commitments for 563 CSeries aircraft, which include firm orders for 243 CSeries airliners.