MONTREAL -- Bombardier says it has received the final instalment of Quebec's US$1-billion investment in the company's CSeries commercial jet program.
The Montreal-based company announced on June 23 that the province would own 49.5 per cent of a new limited partnership with all the assets, liabilities and obligations of the CSeries aircraft program, including larger versions of the plane beyond the CS100 and CS300 should they be developed.
Bombardier received the first $500-million instalment of the provincial investment a week later on June 30, providing the company with funds as it builds the CSeries planes ordered by airlines and other customers.
As a result of the final payment, completed on Thursday as planned, the province's Investissement Quebec received warrants that are exchangeable for 50 million Bombardier class B shares (TSX:BBD.B).
Quebec's financial support comes as the one year anniversary approaches on Bombardier's request to Ottawa for US$1 billion of funding.
The delivery of the first CS100 to Swiss International Air Lines was made at the end of June, followed by a second in mid August. Swiss says the initial aircraft performed as expected despite a few minor issues during the first 30 days of service.
Bombardier has received 370 firm orders for the CS100 and the larger CS300 with up to 160 seats.
The first CS300 plane is slated to be delivered to airBaltic of Latvia later this year.
The CSeries program is 2 1/2 years behind schedule and at least US$2 billion above cost estimates but Bombardier says its size and fuel efficiency will enable it to operate on routes that were previously not profitable for airlines.
Bombardier's publicly traded class B shares closed Thursday at $2.13 in Toronto -- below the warrants' exercise price of $2.21, or US$1.72.
