(Reuters) - Bombardier Inc (TO:BBDb) 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 (355.8 million pounds) 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 focussed on improving profit margins and shedding billions of dollars in debt.
Credit Suisse (SIX:CSGN), National Bank Financial, UBS and TD Securities are the underwriters for the stock offering.
($1 = 1.2968 Canadian dollars)