MIAMI – Bombardier today reported the closing of the previously announced sale of the Canadair Regional Jet (CRJ) Program. to Mitsubishi Heavy Industries, Ltd. (MHI).

Last year, MHI and Bombardier entered into a definitive agreement, whereby MHI would acquire Bombardier’s regional jet program. In May, the companies announced that today was the closing date for the acquisition transaction of the CRJ Program.

The sale closed for approximately US$550m in cash compensation, subject to post-closure changes, and MHI’s assumption of liabilities related to credit and residual interest guarantees in addition to lease subsidies of approximately US$200m.

According to Bombardier’s press release, under the deal, the net beneficial interest of the company in the Regional Aircraft Securitization Program (RASPRO), which is estimated at about US$170m, was transferred to MHI.

Through this sale, MHI acquires the CRJ Series aircraft’s maintenance, support, refurbishment, marketing, and sales activities, including the related services and support network in Montréal, Québec and Toronto, Ontario, and its service centers 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 backlogged on behalf of MHI as of March 31, 2020 until the full delivery of the existing backlog, scheduled in the second half of 2020.

As of March 31, 2020, Bombardier retains certain liabilities that represent a portion of the loan and residual value guarantees totaling US$288m. This balance is mostly set and not subject to potential fluctuations in the value of the aircraft and is payable primarily by Bombardier for the next 4 years.