Bombardier Inc. T.BBD.A

Redemtion of 100 M$ - Good

[Tempo1]

100 M$ is not a big amount but it is a very positive signal.
Don't forget that the Q1 is intensive in consuming cash. They already announced that it will be largely negative in free cash flow for inventory building purpose in Q1. 
They redeemed at par 100 M$ at the same time. 
More important for the signal than for the interest saved (7,8 M$ per annum).
Proof of confidence.

[MyNameIsNobody]

I'll add that by now they pretty much know what the numbers will be for Q1. Sign of confidence and sound management of ressources.  Positive signal indeed.

[johnney]

We will see that today if that is positive!!

[regional700]

si ce n'est pas bon aujourd'hui, ca le sera en 2024 avec prt de 8 millions d'internet de moins a payer

[BBDB859]

They have the cash on hand to do this. They needed just enough to get through 2 Quarters of inventory. My guess is that, we had $1.85B on hand. They only need to keep $1.25B on hand yearly. They thought they needed $600M for Inventory build for the 2 Quarters, and they probably only used up about $500M of it, and they saved $100M from the $600M Inventory slotted, so it goes on the Debt. I think

[johnney]

On level 2 the stock is already down! And with this pulled out, the Gaines made yesterday will probably be wiped out this morning! Always a surprise with this stock, always, and nit in the good way either!!

[vonSachsenanhal]

Completely irrelevant 40 minutes before trading begins. But it's not down in any case. Have you lost touch with reality?

[johnney]

Buyers at level 2 are at $53,03!!

[PabloLafortune]

Di Bert did a good job on this one. Why? Because they cam redeem part of the debenture without paying any premium. 

[BBDB859]

Hi Pablo. Di Bert???

[BBDB859]

Did you mean Bart D???

[PabloLafortune]

Bombardier is paying 100 cents on the dollar ie not paying a premium even though it's 3 years early. This right to redeem early must be in the indenture.  My guess (emphasis on guess) is this was negotiated by DiBert back in 2017. Many of the past early redemptions they had to make an offer ie pay a premium to entice holders to tender.

[johnney]

Is this $100M going to the debt, earlier?

[johnney]

Is this $100M going to the debt, earlier?

[BBDB859]

Thanks for the clarication Pablo.

[BBDB859]

Sorry Clarification