Redemption note (Stockhouse) In a similar vein, investors of aviation stock Bombardier Inc. (TSX:BBD, Forum) have been notified the company made a partial redemption of its senior notes.
The Canadian business jet manufacturer issued a notice of partial redemption for US$100 million principal amount of its outstanding 7.875 per cent senior notes due 2027, which will be paid using cash from its balance sheet.
Senior notes are a type of bond that have priority over other debts in case a company declares bankruptcy. While they have a lower degree of risk compared with stocks, senior notes often also pay lower rates of interest.
Senior notes are a common way for companies to borrow money with lower interest than other kinds of debt. When notes are redeemed for company shares, they reduce the businesses’ debt obligations.
The redemption date is April 15, 2024, and the redemption price for the redemption notes is 100 per cent of the principal amount redeemed, plus accrued and unpaid interest.
Payment of the redemption price and surrender of the notes for redemption will be made through the facilities of the Depository Trust Company on April 15