Shares & Dividends, Preferred shares, Series 4

Share information

An unlimited number of Series 4 non‑voting preferred shares, without nominal or par value, issuable in series are authorized.

Dividends

Dividends on Bombardier securities are to be paid, subject to applicable law, if and when they are declared by the Corporation's Board of Directors.

Please note that as of December 31, 2005, unless stated otherwise, all dividends paid by Bombardier on all of its common and preferred shares are considered "eligible dividends" as per the Canadian Income Tax Act and any corresponding provincial or territorial legislation. The same designation applies under the Quebec Taxation Act for dividends declared after March 23, 2006.

The following lists the dividends declared by Bombardier's Board of Directors on the Corporation's securities.

Redemption features:

Series 4 preferred shares are redeemable at Bombardier Inc.'s option at $26.00 per share on or after March 31, 2007, but prior to March 31, 2008;
at $25.75 if redeemed on or after March 31, 2008, but prior to March 31, 2009;
at $25.50 if redeemed on or after March 31, 2009, but prior to March 31, 2010;
at $25.25 if redeemed on or after March 31, 2010, but prior to March 31, 2011;
and at $25.00 if redeemed on or after March 31, 2011.

Bombardier Inc. shall provide not less than 30 nor more than 60 days' notice of such redemption to each holder of the Series 4 preferred shares to be redeemed. If less than all outstanding Series 4 preferred shares are to be redeemed at any time, Bombardier Inc. will have sole discretion for determining the mode of selection for the shares to be redeemed.

Conversion features into class B shares:
On or after March 31, 2007, Bombardier Inc. may, on not less than 30, nor more than 60 days' notice, and subject to stock exchange approvals, convert all or any of the Series 4 preferred shares into Class B shares. The number of Class B shares into which each Series 4 preferred share may be so converted will be determined by dividing the then applicable redemption price per Series 4 preferred share together with all accrued and unpaid dividends, up to but excluding the date of conversion, by the greater of $2.00 and 95% of the weighted average trading price of the Class B shares on the Toronto Stock Exchange for the period of 20 consecutive trading days, which ends the fourth day prior to the date specified for the conversion or, if that fourth day is not a trading day, on the trading day immediately preceding such fourth day. If less than all the outstanding Series 4 preferred shares are at any time to be converted, the shares to be converted will be selected by lot or in such other equitable manner as the Corporation may determine. (For example: redemption price $26.00; weighted average trading price of Class B shares $11.45, 95% of $11.45 is $10.8775, which is greater than $2.00; thus, dividing $26.00 by $10.8775, one would obtain 2.39026 shares at the conversion date. Since fractions of shares are not available, the outcome would result in two Class B shares and the remainder (0.39026 shares) paid in cash).

Dividends:
As of April 30, 2002, dividends are payable quarterly, if declared, and in cash with an annual dividend rate of 6.25% ($1.5625 per year or $0.390625 per quarter) on Series 4 preferred shares.

Read the prospectus