RE:RE:Segments of Bbd with big growth potential100% correct. What EM does over the next few months w/r/t the debt will make or break the company, IMO. I thought Fitch did a pretty good job in their final report of analyzing the challenges facing BBD, even if they do lean a bit toward a pessimistic point of view. Well worth reading, IMO.
Their upgrade of the bonds made me wonder if that is why BBD repaid the credit facility early. Perhaps BBD is going to the bond market now.
I think that might be a good move. If they could raise $2B at sub 6%, they would have about $5B to throw at the debt. $1.5B for the debt due this year, and $3.5B to take out the 25's and 27's. This would get their annual interest costs down to the $400M range.They would need to re-establish a LOC ($500M-$1B) so they have some wiggle room. They will need to raise money again in 2022, with $1.7B due in 2022, and an additional $1.25B due Jan 15, 2023. That might be a good time to consider a shareholder's rights offering, assuming there has been improvement in the share price.
Lots of possbilities, but they need to convince the market that they will actually get it done.
Jim
PabloLafortune wrote: Excellent. But keep in mind, Bombardier has a lot of debt, they are paying a lot of interest, and the stock market (for most companies at least...) is looking for an improved financial picture before we can see any material share price appreciation. The motherhood and apple pie stuff - new markets, trust management - just won't cut it. And while a $100M improved EBTIDA, a backlog that is maintained, a $100M RE sale, etc...will help, each one in and of itself (though many all at once would help for sure) not material enough in the grand scheme of things when you have $4.7B of net debt projected by the company to rise to $5.2B by the end of 2021. The only real problem at the end of the day is the debt and the interest paid thereon, its the elephant in the room and until its addressed one way or the other, the share price will continue to stagnate IMO. Which I have been saying for months if not years. YMMV. GLTA.