Bombardier Inc. T.BBD.A

What's going on????

[BBDB859]

Simple.

They are trying to aquire $1B to $1.2B from the Junk Bond market to get rid of the remaining debt that they couldn't get rid of, for 2022/23. They aren't waiting for the due dates for the next couple years to scramble for the funds when they're due in 2022/3. Smart. But costlier than a possible rate reduction to anticipated 5.5%.

That debt will be unsecurred, and cheaper at about 7.1%, for $1-$1.2B, and will be due 2026.

So basically they're clearing the runway till 2024. with the receipts from this placement.

[Jim99999]

How do you figure it's cheaper? They are borrowing at 7.125% to pay debts that range from 5.75% - 6.125%. Jim

[Shamhorish]

Jim, that is what cinfused me  1B at 7.25% to pay a LTD of 5.?5 - 6.?5 may coast bbd about 15 millions /year more than what they are paying now??????????????????

[BBDB859]

I meant that it's cheaper than the 7.75% and the 8.7% they were getting recently for LTD from Hedge Funds for unsecurred bonds. Yes you're right it's more expensive than ewhat we were expecting  them to renew (5.5%). But they realized that their credit rating wasn't worthy of that rate, so they're taking advantage of the 7.1% rate of today, instead of paying 8.7% later

[Shamhorish]

it is confusing on one side and sad on the other side to see such large company with very good products and vision, and prospect can not get a LTD ot 3 - 4 %  i was hoping they would be able to get same terms as they got last year 3.6% debt, from same lenders

[Shamhorish]

it seems that BBD  upsized the offering to US$1,200,000,000 at 7.12%