RE:RE:RE:RE:RE:RE:RE:RE:RE:MARTELWhat I am saying is that they are currently using a good portion of their inventories and receivables to secure the recent $1B credit facility. I suspect that they do not have much more in inventories and receivables to secure any more credit. Therefore, when the long term debt is refinanced, it will not be at the same low rate as this credit facility.
Jim
Bullvsbear99 wrote: I think half or 700 mill of what they borrowed recently will have to be paid back when rail closes so that gives them that much to secure against. As for how much inventories they have well that I don't know but any aircraft not delivered or are partial build counts as working inventories so i would imagine they have over $1 billion for sure.
Jim99999 wrote: How much do you think they have in receivables and (paid for) inventories? I imagine the $1B is about the max they can secure with their current receivables and inventory.
Jim
Bullvsbear99 wrote: They have done it once and I don't know why they wont do it again. By securing loans against the inventory bombardier got lower rates. Maybe they will refinance with lower rate secured against inventory going forward.
Shamhorish wrote: bbd can keep kicking the cane down the road to lower interest rate
after paying 1.25 b in 2021 and paying 1.75b in 2022, and showing that BA is producing free cash flow for (from Q4 202 to Q2 or Q3 2022) 9 Quarters, bbd can get another loan of 6.1 b pay all long debt and start a new loan on6.1 b at much lower rate, at let us say 3.6% from same one that gave them one bilion and reduce interest payment from 450 milion to about 220 million
if bbd produce 400 million per year, BA will have no problem servicing this debt
genious idea