Bombardier to issue C$750 million in new equity

Thu Feb 19, 2015 4:00pm EST
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TORONTO Feb 19 (Reuters) - Canadian airplane and train maker Bombardier Inc said on Thursday that it has agreed with a syndicate of underwriters to sell C$750 million ($600 million) in shares on a bought deal basis.

A bought deal occurs when an underwriter, or a syndicate, buys shares from an issuer at a set price before selling them to the public.

Bombardier said it is selling about 339 million subscription receipts exchangeable for Class B shares in Bombardier.

Bombardier stunned investors last week when it replaced its chief executive officer, suspended dividends, and said it planned to raise $2 billion in new debt and equity as it revealed more cost overruns in its long-delayed CSeries passenger jet program.

($1 = 1.2494 Canadian dollars) (Reporting by Euan Rocha; Editing by Lisa Shumaker)