March 5, 2018 / 10:41 PM / 3 months ago

Canada's Bombardier to sell shares worth C$638 million

(Reuters) - Bombardier Inc (BBDb.TO) will sell equity to strengthen its balance sheet as part of a five-year turnaround plan, the Canadian plane-and-train maker said on Monday.

FILE PHOTO - A Bombardier logo is seen at the Bombardier plant in Belfast, Northern Ireland January 26, 2018. REUTERS/Clodagh Kilcoyne

The company will sell 168 million Class B shares at C$3.80 per share to raise C$638.4 million (355.8 million pounds) in gross proceeds. The price represents a discount of 4 percent to the stock’s Monday closing price on the Toronto Stock Exchange.

Bombardier, which considered bankruptcy in 2015, announced a turnaround plan focussed on improving profit margins and shedding billions of dollars in debt.

    Credit Suisse, National Bank Financial, UBS and TD Securities are the underwriters for the stock offering.

    ($1 = 1.2968 Canadian dollars)

    Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar

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