RE:Good newsWell, this puzzles me.
I was under the impression that this credit facility was the least expensive of their debt. The news release about it mentioned Libor plus an agreed upon margin, and that it was secured with inventories and receivables. I thought the rate was about 3.8%.
However, in the conference call, BD mentioned already repaying the first half of the facility, and said something to the effect that "it was a good use of capital, given the high cost of the facility". Now BBD has chosen to repay the other half as well. Perhaps the rate was higher than I thought. Or perhaps the 'high cost' was somehow associated with the secured inventories/receivables? Any insights appreciated.
Jim
mtlmoneyman wrote: Bombardier announces full repayment of Senior Secured Credit Facility
maybe this will give a boost to the stock price