(Adds background on recent changes, further detail on equity deal)
TORONTO, Feb 19 (Reuters) - Canadian airplane and train maker Bombardier Inc said on Thursday it has agreed to sell C$750 million ($600 million) in equity on a bought deal basis to a syndicate of underwriters.
Bombardier stunned investors last week when it replaced its chief executive, suspended its 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.
The embattled company said at that time it planned to raise about $600 million in equity and up to $1.5 billion in new long-term debt.
On Thursday, Bombardier said it is selling on a bought deal basis about 339 million subscription receipts exchangeable for Class B shares in the company.
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.
While these deals typically occur at a slight discount to a company's last trading price, they offer the issuer certainty as the banks pay the money up front and take on the risk of having to market the equity.
Bombardier is selling the equity at C$2.21 per subscription receipt, a nearly 10 percent discount to the C$2.45 closing price for its Class B shares on the Toronto Stock Exchange on Thursday.
The large discount that Bombardier agreed to underscores the challenges facing the company. Montreal-based Bombardier, which is now testing its new CSeries jet after years of delays, had said just last month that it had enough liquidity to fund its development programs.
If the syndicate opts to tap the over-allotment option, the proceeds from the issuance will rise to about C$863 million, the company said.
The syndicate is being led by National Bank Financial Inc , UBS Securities Canada, CIBC and Citigroup Global Markets Canada Inc.
$1 = 1.2494 Canadian dollars Reporting by Euan Rocha; Editing by Lisa Shumaker and Andrew Hay