RE:RE:RE:RE:Segments of Bbd with big growth potentialI was surprised when I heard that, bbdaerospacecnd, because I am sure I read in a release that the variable rate was around 3.8%. After Bart said that, I looked for the release again, but could find nothing that actually mentioned the rate, so now I'm not sure.
Regardless, that facility was very well secured with inventories and receivables. BBD will not be able to get billions of dollars in loans at low rates without providing substantial collateral. As you suggest, such terms may be too restrictive.
Jim
bbdaerospacecnd wrote:
Bart:"we took a first step this past week towards repaying half of the $750 million drawn on the $1 billion secured facility and associated fees. This repayment is required upon the sale of BT and represents a good use of our capital, given the high cost of that facility."
that does not sound like a cheap 3-4% loan. Maybe he refers to the prohibitive nature on sales efforts when you have leans on the planes