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Bombardier Inc. T.BBD.A

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

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

Bullboard Posts
Comment by MikeySwooshon Aug 28, 2015 2:38pm
110 Views
Post# 24060404

RE:RE:Income Investors: Get a 15.3% Yield From Bombardier Inc.

RE:RE:Income Investors: Get a 15.3% Yield From Bombardier Inc.Just be aware that on the thesis of interest rates rising being a compelling reason to own BBD.PR.B, such would also mean that it would be incrementally more expensive for Bombardier to refinance its debt. Bombardier and its shareholders are fortunate that bond yields across the spectrum haven't normalized since the great recession, as it's allowed them to negotiate debt on terms that don't place even more undue pressure on their cash flow. All Bombardier investment products, from debt through equity, are really only compelling on the basis of an improving cash flow metric, and though BBD.PR.B are trading at a huge discount to par, their thesis conflicts with the success of Bombardier through the financing portion of their cash flow. Now if the C-Series becomes a screaming success in the next couple of years, and Bombardier is able to significantly pare back their debt-to-cashflow ratio, and pay back some of their debt, and that is followed by the normalization of interest rates, then BBD.PR.B looks REAL GOOD. To sum up, floating rate and fixed-reset preferred shares are only really compelling when leverage isn't working against the company for which they apply, and are priced accordingly. Essentially, you're doubling down on the thesis that finances are likely to improve in the shorter term. GLTA  
Bullboard Posts