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Bombardier Inc. T.BBD.A

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

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its 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, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Post by BBDB859on Apr 30, 2022 10:11am
274 Views
Post# 34644686

just for clarification on the Equity Raising

just for clarification on the Equity RaisingWe've had this discussion on raising Equity here on this board quite a few times. 

Just to sum up. Because I go off on a tangent sometimes

-The Bomber can't issue more shares right now. They'll just dillute everybody. In fact they want to reduce the outstanding shares. So that's out
-The low share price of the  stock right means that they have to issue a lot of shares to even get anywhere to the Billions they need to reduce debt.
-They can issue Senior debt. But even there there is still heavy debt, and they can't raise Billions there, because they'll isolate the common Shares, and they've pretty well have put a nail in the coffin to the rest of the A's or B's as far as Shareholders value. Plus there is still heavy interest to pay with Senior Debt, and Senior Debt always takes president over Common Shares. Besides the coupon there with rising interest rates isn't going to be that great with rising interest rates. Right now Banks are offering 8% on some of their Energy ETF's with great strong companies in them.  

The Family doesn't want to lose control of their Dual Share system while raising funds

-So that only leaves Bringing in an Equity Partner. Someone like Bain Capital. But even there, they have to trust that partner to do as the Family says to run Bomber.

They could take on a Partner, But they run the risk of losing their Dual Share system. They can't sell to someone like Warren Buffet because they will lose control for sure. They can sell to Bain Capital. They have them as partners in BRP along with Case I believe. My feeling there is that they don't want sell to anyone, after the BT fiasco with Casse.

So bottom line. Pay LTD as planned through Profits. The R/S may solve all their problems with regards to the Market Favour of the Bomber Shares. Profits are also the best way to do it. They'll gain better ratings, and confidence as a stand alone company. They won't squander the hard worked money like PB did with the CSeries. In fact they're going to run a tight ship, and that's what I, and everyone with half a brain wants to see. Btw. We're doing fine just as we are. 

I know that sometimes people throw ideas on this Board, about this or that, every once in a while, including myself. But if you really think those ideas through. They are just not FEASABLE. Enjoy your weekend.
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