Plane and train maker Bombardier raising $638.4 million in share offering

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In this Monday, Oct. 19, 2015, file photo, a worker walks in front of a sign at Boeing\'s 737 delivery center at Boeing Field in Seattle. Bombardier Inc. is raising 38.4 million in an offering of shares as the company continues to turnaround plan. THE CANADIAN PRESS/AP-Ted S. Warren

MONTREAL – Bombardier Inc. is raising $638.4 million in an offering of shares as the company continues its turnaround plan.

The plane and train maker has signed a deal with a syndicate of underwriters who have agreed to purchase 168 million class B Bombardier shares at a price of $3.80 per share on a bought deal basis.

The underwriters have also been granted an overallotment option for up to an additional 25.2 million class B shares. If the option is exercised in full the financing will grow to $734.1 million.

Bombardier shares closed at $4 on the Toronto Stock Exchange on Monday.

Shares in the company have surged in recent months, helped by improved results and a win in its trade fight with Boeing.

The U.S. International Trade Commissioners voted 4-0 in January that Boeing didn’t suffer harm from prospective imports of C Series planes.

Companies in this story: (TSX:BBD.B)

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Abbey Westbury

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