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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
Post by pablo87on May 03, 2020 12:50pm
356 Views
Post# 30981116

Crazy proposal

Crazy proposalIn light of Boeing deal with ratings agencies. Alstom deal cancelled force majeure. CDPQ will take 51% of BT for $1B (no consolidation). Partners will agree to invest in business first 3 years, no dividends. $1B of BA cash goes to BT but BT borrows $2B @ 2% and pays back to BBD. Net BA gets $2B and retains 49%. Down the road, once all smooth, BT will be vended back to Bombardier. Overall fair deal after CDPQ screwed over Bombardier 5 years ago. BA will use $2B of own cash from asset sale proceeds + $2B from BT proceeds above to buy back debt on open market (hopefully below 90 cents). CDPQ will do the same to the tune of $2B and lend back same to BBD at 3% guaranteed by QC. Ottawa will also lend $2B at 3% as well (optional). Net result is debt in BA will be 4-5B @3-%.3.5%. Debt to EBITDA 4:1, interest coverage 6-7:1. No restriction on buying back shares (due to manipulated unreasonably low Bombardier share price). Debt paid down from cashflow. The debt/interest/ratings agencies playing field is levelled.
Bullboard Posts