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.

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Bombardier Inc. > Lesailesduquebec - Bombardier - sentier- étroit

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Comment by Jim99999on Feb 15, 2021 4:25pm

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Post# 32569434

RE:RE:RE:RE:Lesailesduquebec - Bombardier - sentier- étroit

The 8.75% is on ~$1B of the ~$1.9B due this year.

2025's: $1.5B @ 7.5%
2027's: $2B @ 7.875%

4 years at $270M/yr + 2years at $157.5M/yr = $1.395B interest on those two until maturity. Pay the penalties, I say.

However, I suspect they will take a more cautious approach closer to what you suggest. I think they will want to keep a bit of a safety net in case the aviation recovery is not as fast as we would want it to be.

Jim

BBDB859 wrote: I agree on both counts.

They should get rid of the higher interest rate JB bonds of 2025 and 2027. But the only problem I foresee is that these Bond Holders are too far away 4years and 6 years. Why would the JB Holders agree to give up such high interest bearing bonds at 8.75% up (BTW is that correct 8.75%)? The only way Bombardier can get rid of those is to pay the penalties.

If what you say is correct and i have no reason to doubt it. Then my suggestion would be to renegotiate the first one coming up in 2021 by only using only $500M to pay off a smaller portion for now, and then renegotiating the $1.3B remaining right now for 5.5%. This method will show that they can pay off debt when needed and establish the 5.5% lower rate to JB Holders.Then pay the penalty whatever it is to get rid of those other high interest JB's for 2025 and 2027. They just signed those didn't they, so they'll carry the highest discharge penalties. But i think if they can get the 5.5% rate? It's a no brainer.

Hopefully the 2021 and 2022 JB's are held by different HEDGE FUNDS. So you can use one Hedge Fund to get rid of the high interest Hedge fund.

What ever the case? Bombardier should hire a couple of shrewd Financial advisers to start the process ASAP.

This is more important right now than anything they have to deal with. Only Bombardier knows what those penalties in those debt's they signed say. Only they know what those Shylock Hedge Funds are negotiating with them.

This process of renegotiating these debt's look to me to be a little tricky but they aren't as hard as people think. The dicision in selling BT was hard for the Family. So they have to use the BT cash wisely. They have no choice.