Bombardier Inc. T.BBD.A

Total debt is now up to... or down to...?

[MyNameIsNobody]

If we look at what is posted in other thread, and the whole thing on bbd's website, it looks to me like they bought back, or paid off, well over 5 billions of debt.

I'm not looking for the exact number but if that's correct this is huge, not that I'm expecting the sp to to drastically go up but more that the plan is well on it's way.

What do you guys think?

[MyNameIsNobody]

lol... my mistake, should have read that again... too many zeroes makes one guys dream of bigger numbers!

[Shamhorish]

Bombardier has deployed approximately $2.4 billion of available cash towards debt repayment,

[Shamhorish]

i think what is important too is the reduction of annual interest paid on long term debt by tomorrow, when they complete the tender offered, i think (if i am not mistaken) annual interest paid on long term debt is reduced by about (180 -200) millions $ and this is significante i think rating agencies will upgrade bbd rating,  then bbd can borrow billions in lower rate then bbd can make

[MyNameIsNobody]

The better credit rating and reduction of the interest paid kind of 'virtuous circle' you describe there makes sense.  It's all pointing to something more manageable.and the baby steps to better than expected profits... I'm expecting between 10 and 15% better than what they mentionned. (% are a guess, not to be mistaken with an 'educated guess')

[Jim99999]

Check your math. The tender offer reduces annual interest by approx $116M/yr. This is the all important question.  In order to pay out the remainder of the 2021-2023 debt, BBD will need to raise approx $1.5B, likely later this year.  It will be interesting to see what rate BBD will be able to obtain. Jim

[Shamhorish]

yes, you are right, i think after paying the  remainder of the 2021-2023, 

[HopefulJuan]

1.5% seems to be the going rate.