Bloomberg Law
Sept. 16, 2020, 4:47 PM

Bombardier Bonds, Shares Rise as Rail Sale to Alstom Is Signed

Sandrine Rastello
Sandrine Rastello
Bloomberg News

Bombardier Inc. said it will sell its rail unit to French train maker Alstom SA at a lower price than the two sides agreed upon in February, but will close the deal earlier than expected.

The new terms are based on an enterprise value of $8.4 billion for the division, down $350 million, Bombardier said in a statement. The Montreal-based company said it will receive net proceeds of about $4 billion, as much as $500 million less than it expected seven months ago.

Bombardier’s debt moved sharply higher. Bonds due in October 2022 traded at 91.3 cents on the ...

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