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

Industrials Aerospace & Defense

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

Bombardier Inc. > DOO.TO

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Comment by raphaelle2on Jan 19, 2021 1:27am

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Post# 32324047

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:DOO.TO

" Dont bother me with facts...my mind is made up" I am pessimistic and I like it !

Jim99999 wrote: Thank you for the response, raphaelle2, I agree with much of what you say.

The point I was originally trying to make is that the Alstom deal does not eliminate concerns about the debt. There are numerous posters who try to paint the debt situation as resolved, and believe BBD will have no trouble refinancing at 3-4%. This is simply unrealistic.

Spirit Aerosystems raised $500M in senior secured notes last October, at 5.5%. Why not 3-4%? Because lenders want to get as much as they can. The higher the risk profile, the higher the rate. BBD's risk profile will remain high until they can prove consistent profitability.

Even with all the positive steps EM is taking, consistent profitability will be difficult to achieve if the company is paying $3-400M in interest every year.

Jim

raphaelle2 wrote: Listen to it again Jim... As I keep saying here the debt by itself is not the new BA problem. Its the FCF and the EBITDA which need to be adressed. This will be done by 1) limiting the capital ( cash burn) to the depreciation level during the next 3 years and getting rid of all the old BBD corporate expenses in line with the lean BA. This will boost the margins on both servicing and OEM activities. Listen again not to look for selfservicing arguments but to get an idea how EM is adressing the critical elements of this time business! And relax. Because I dont think that we will see the impact of these changes next month. Only by year end. GLTAll the patient investors.