RE:NumbersAside from an outright sale or go private transaction, the 2 thing that I can think of that makes sense for the company and existing shareholders is a) a rights offering. That would bring down the debt and interest cost and bring up the share price. A large investor would have to be at the ready to subscribe to the shares not taken up by existing shareholders. And b) a convertible debentures offering (the pref B's are only yielding 6.6% right now.). They usually are subordinated to everything else incl unsecured but do outrank shares and prefs so spitballing, 5.xx% with a $1.xx conversion price and 3 year term? Carrying on business as usual with that much debt and those ratios for a company the size and importance of Bombardier is not a good plan and basically is what Bombardier has done the past 5 years with the results we are all familiar with.
bbdaerospacecnd wrote: Ltd=$6.5 bln
cash: $1.8 bln
more cash from the sale of extra manufacturing facilities?
aftermarket segment: at least 4900 planes in service supported by bbd
Feasible scenario:
Revenue: 6.5 -7bln
margins: 8-12 %
EBITDA =520- 840 mln
Interest on LTD at 6.5-7%-= $422-455
if bbd would manage to get a 3% loan of $1.8 bln for corporate purposes and throw the current cash of 1.8 bln to pay the debt, then
4.7 bln LTD at roughly 7% and 1.8 bln LTD at 3%= $383 mln interest cost per year
it gets better with any additional refinancing, margins and revenue growth
There is definitely a path upwards
bbd will have an easier time to refinance with improved SP. Look at AMC sudden windfall with refinancing only due to reddit mob
COMMENTS?