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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRAF | BOMBF | BDRBF | T.BBD.B | T.BBD.P.B | T.BBD.P.C | T.BBD.P.D | BDRPF | BDRXF

Bombardier Inc. is focused on designing, manufacturing, and servicing business jets. The Company has a fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. The Company designs, develops, manufactures and markets two families of business jets (Challenger and Global), spanning from the mid-size to large categories. The Company also provides aftermarket support for both of these aircraft, as well as for the Learjet family of aircraft. The Company's robust customer support network services the Learjet, Challenger, and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, The United Arab Emirates, Singapore, China and Australia. Its jets include Challenger 300, Challenger 350, Challenger 3500, Global 5000, Global 5500, Global 6000.


TSX:BBD.A - Post by User

Bullboard Posts
Comment by MikeySwooshon Aug 28, 2015 2:38pm
107 Views
Post# 24060404

RE:RE:Income Investors: Get a 15.3% Yield From Bombardier Inc.

RE:RE:Income Investors: Get a 15.3% Yield From Bombardier Inc.Just be aware that on the thesis of interest rates rising being a compelling reason to own BBD.PR.B, such would also mean that it would be incrementally more expensive for Bombardier to refinance its debt. Bombardier and its shareholders are fortunate that bond yields across the spectrum haven't normalized since the great recession, as it's allowed them to negotiate debt on terms that don't place even more undue pressure on their cash flow. All Bombardier investment products, from debt through equity, are really only compelling on the basis of an improving cash flow metric, and though BBD.PR.B are trading at a huge discount to par, their thesis conflicts with the success of Bombardier through the financing portion of their cash flow. Now if the C-Series becomes a screaming success in the next couple of years, and Bombardier is able to significantly pare back their debt-to-cashflow ratio, and pay back some of their debt, and that is followed by the normalization of interest rates, then BBD.PR.B looks REAL GOOD. To sum up, floating rate and fixed-reset preferred shares are only really compelling when leverage isn't working against the company for which they apply, and are priced accordingly. Essentially, you're doubling down on the thesis that finances are likely to improve in the shorter term. GLTA  
Bullboard Posts