MIAMI — Bombardier and the Government of Québec have entered into a definitive agreement for the previously announced US$1 billion investment, thus creating the CSeries Aircraft Limited Partnership (CSALP).
As previously reported last October, the CSALP grants Québec government through its mandatary, Investissement Québec, a 49.5% equity stake, to which would be transferred the assets, liabilities and obligations of the CSeries program. The remaining 50.5% will be owned by Bombardier, which will carry on the operations related to the program.
The investment has been approved by Bombardier’s Board of Directors and the Cabinet of the Government of Québec and remains conditional upon the satisfaction of other customary conditions.
“We are delighted to officially welcome the Government of Québec as an equity partner in the CSeries program,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “Their investment will accelerate the momentum we’ve created, strengthen customer confidence in the aircraft and provide Bombardier with the financial flexibility needed to compete and win.”
The investment will be used entirely for cash flow purposes of the CSALP, and it is expected to occur in two US$500 million installments, due on June 30, 2016 and on September 1, 2016.
The Board of Directors of CSALP will consist of five directors, three to be appointed by Bombardier and two by the Government of Québec, and it will be led by Daniel Johnson, who currently serves as a Counsel for Bombardier’s Board of Directors.
As part of the agreement, the strategic, financial and operational headquarters for the CSALP, along with the assembly, manufacturing, engineering services and research and development activities of the CSALP, will remain in the Province of Québec for at least 20 years.