Bombardier Inc. T.BBD.A

Paying down the debt ahead of schedule

[bicente]

Is always welcome ... next shareholder meeting should be fun ... the skies are blue ;)... GLTA

[bbdmic]

They don't pay any debt they just spread it so they don't have to pay to much at once.

[bicente]

Yes you are right , I didn't read it and quickly jumped to the wrong conclusion ... GLTA

[MyNameIsNobody]

Yup, they're not lowering the debt load, they're angling to borrow 500M$ and push that debt a few years away to 2031 we're they didn't have any coming to term, and use that money to pay 400M$ from 2026. Spreading is what they've been doing, along with some actual repayments, 100M$ recently, so they are doing as they advertised.  We'll know more about the plan, and

[clubhouse19]

looks to me they are anticipating better rates . Playing the JB Wentworth game of I need cash now.  No real change in principal amount other than the 100 million buyback of notes.  Am I wrong ?

[MyNameIsNobody]

Well, you're right about the better rates, I forgot to mention that in my post.  This is mostly what they're looking for, better rates and getting debt terms in smaller chunks. Borrowing money when you don't really need it is always a better proposition for the borrower. They're doing everything the right way... down to these small details. 

[Shamhorish]

i do not know if they willget a better rate than what they are paying now (7.125%) imo, they are kicking the cane,,,,

[flamingogold]

There is no kicking the can here. Future borrowing rates are already declining in anticipation of up to 3 rate cuts by the FED before the end of this year. By default, the BoC will follow.

[clubhouse19]

Why ?? did you think all this debt was going to be cleared by 2027 ?   Refinancing a long term debt for better rates is always in play when the market calls for it and part of their being a good financial management.

[clubhouse19]

Well what daya know.?    Better rates and better scheduling.  There was no other reason all things equal.

[bbdmic]

I think they planning to pay 750 M$ per year from 2026 and after till finish.