Jim99999 wrote: The deal is based on an Enterprise Value of 7.45B Euro. At the time the deal was announced, 7.45B Euro equalled $8.2B USD. Of that amount, $1.4-1.8B goes toward pension obligations and other liabilities, and closing adjustments. This leaves $6.4-6.8B as the net proceeds of the deal.. From that, $2.1-2.3B goes to CDPQ, leaving BBD with $4-2-4.5B net proceeds. However, these numbers do not include the anticipated approximately $1B cash at BT that goes with BT to Alstom, so the real "net" is $3.2-3.5B.
BBD got about $500M from the CRJ sale, and hopes to get an additional approximately $500M from the Spirit deal. However, those monies will likely be used by the time the Alstom deal is finalized. As well, BBD will be required to pay 50% of whatever is owing on the new $1B credit facility recently announced, when the Alstom deal closes.
Based on the above, I do not anticipate BBD being able to reduce their long term debt by more than $3B, if that.
One thing that may benefit BBD is the exchange rate. When the deal was anounced, 1 Euro was around 1.08 USD. Today, it is around 1.19 USD. If that trend continues, BBD may end up with several hundred million more than anticipated.
Jim
Skyisthelimite wrote: Thx for the replies ;) I get and feel most if these numbers but I still don't undersand why the 9.5B CDN(?) debt shrinks to only to 6-7B after the sell for roughly 10B U$ 0f BT? Even if CDPQ gets 30% that is still 7B US to bbd...and that is not counting the sell of the other devisions. Is the cash burn that bad?