RE:RE:RBC: Extracts from the full reportGood question.
They don't demonstrate their math on that just saying the economy will be achieve by lower debt and lower average interest rates by refinancing.
1.- Once the working capital level normalized (beginning of 2025), we culd have a 300-500 M$ of reimbursment for a 20 M$ -35 M$ of interest savings.
2.- The long term debt at the end of 2021 was at 7047 M$ and declined to 5 980 M$ at the end of 2022, a 1 067M$ decline or 15%. The interests paid in 2023 were 19% lower than in 2022 ( 392 M$ VS 484 M$). More than the reimbursments. A 19 M$ saving over the reimbursment done (4% of 484 M$). Interesting.
3.- Long term debt for Bombardier is still at an average of 7 25% , interest rates stand high longer than expected to date but it is largely accepted that a decrease will begin soon, long rates already moved down. For every 1 B$ refinanced at a 2% lower rate they will save 40 M$ per year. Is it a non sense to think that while the decline would accelerate, bombardier can refinance 1,5 B$ till the end of 2025 ?
So, will all this happens that way? I don't know, but it show that it is achievable.