Bombardier has concluded the sale of the CRJ
Series aircraft program to Mitsubishi Heavy Industries (MHI) for a
cash consideration of approximately US$550 million, subject to
post-closing adjustments and the assumption of liabilities by MHI
related to credit and residual value guarantees and lease
subsidies amounting to approximately US$200 million.
Under the agreement, Bombardierís net beneficial
interest in the Regional Aircraft Securitization Program (RASPRO), valued at approximately
has been transferred to MHI.
Through this sale, MHI has acquired the maintenance,
support, refurbishment, marketing, and sales activities for the
CRJ Series aircraft, including the related services and support
network located in Montrťal, Quťbec, and Toronto, Ontario,
and its service centres located in Bridgeport, West Virginia, and
Tucson, Arizona, as well as the type certificates.
Bombardier will continue to supply components and
spare parts and will assemble the remaining 15 CRJ aircraft in the
backlog as of 31 March 2020 on behalf of MHI until the complete
delivery of the current backlog, expected in the second half of
Bombardier retains certain liabilities
representing a portion of the credit and residual value guarantees
totalling US$288 million as of 31 March 2020. This amount is
largely fixed and not subject to future changes in aircraft value
and is mainly payable by Bombardier over the next four years.