RE:RE:Good newsThis company honestly. By the time we find out what they're doing we can lose our whole investment.
I think what they may be doing is that. They're discharging one facility with another cheaper one, now or later, that is less onerous. In order to do that, they would have to discharge it first. Remember this one incumbered, both both receivales/inventories.
That's the only thing I can think of. The new facility they want to put in place may not have security, guarantees or encumberancies, involved with it. Or they may just be using cash on hand (the $1.8 in reserves) for now, till they get some other cheaper Facility. Remember
they can't deploy the whole $5.5 on hand immediatetly. Jim99999 wrote: Well, 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