Bombardier Inc. T.BBD.A

How much debt will be left after BT sale?

[LyChauncey]

The company has about 10 B debt outstanding right now. Will they receive the full 8.4 B from the transaction? Or half of this amount is for CDPQ?
Thanks!

[Zimmee1]

I was assuming the debts is much lower when Bombardier has sold his aerospace Division to Airbus and the CRJ to Mitsoubishi but it is not easy to have the exact answer. I will call Monday to Bombardier's Investors Relations Dept., to find out the exact number in real debts. Think about: Is it safe to put moneys to a corporation with multi billions dollars debts? Coincidently their debts are

[pablo87]

My best guess: The Q2 cash position is 2.7B, pro-forma the full $1B loan from Apollo. Pro-forma debt is thus $10.3B. The BT proceeds will be 5.3B Euro per Alstom CEO.  After returning CDPQ $2.1B and the $386M CDPQ invested in Q1, that leaves Bombardier with $3.2B proceeds and $500M in shares (which is as good as cash...).  That includes the $414M Bombardier invested in Q2. They

[Jim99999]

Nice analysis, pablo87. Didn't quite follow you at the highlighted text. Could you elaborate your thinking w/r/t interest expense and how it will affect debt in H2? Thanks, Jim

[pablo87]

I guesstimate interest on bonds, etc in the 2nd half at $350M+ incl. prefs. That has to be paid out, right?

[Jim99999]

Thanks, pablo87.

[bbdaerospacecnd]

Thanks, Pablo. good analysis. I think that there is a potential for the upside BT closure figure. the more contracts BT wins now the better for the final settlement, the more deliveries now the better cash position at the deal closure.  quote=pablo87]My best guess: The Q2 cash position is 2.7B, pro-forma the full $1B loan from Apollo. Pro-forma debt is thus $10.3B. The BT proceeds will be

[pablo87]

bbdaero, agreed. didnt want to be overly optimistic.  The impression I got from Alstom is they're paying $5.3B Euro "point la ligne".  So any extra cash generated could be taken out and of course, the inverse is also true.  Go BT! [/quote]