March 5, 2018 / 10:46 PM / 9 months ago

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

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

(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.

The company will sell 168 million Class B shares at C$3.80 per share to raise C$638.4 million ($492.3 million) 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 focused 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.

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

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