RE:RE:RE:RE:RE:Last time on the debtOk, this is the last time I will say this.
They raised $1.2B and $260M, not $1.2B and $510M.
There is no other $250M. Do you agree that there is $514M remaining on the Oct 2022 issue? Do you agree that there is $534M remaining on the Jan 2023 issue? I know you do, you already said it yourself.
They are at those numbers because the $1.46B they raised
has already been used to pay them down to those values. They can not pay off the rest of the 2022 and 2023 issues with the raised money because it is already gone. They currently have $7.35B in LTD. They currently have $2.1B in cash. They can afford to put at least $600M of that $2.1B toward debt, bringing LTD down to $6.75B. They will likely get a LOC to pay out the rest of the 2022 and 2023 debts.
Jim
BBDB859 wrote: Jim.
I'll take one last kick at the can with you on what I've posted for your sake, and for those that you say, may be confused on this board, from that post. Although, I think you are not giving enough credit to some of the posters here, because a lot of them are very knowledgeable here. They don't always express it, and post it, but over the years I've learned many things here from others.
I've highlighted in yellow the crux of your statement below. To which there is a simple explanation to why I did what I did with the cash on hand, and not add it to LTD.
Although I've used the mortgage similarity to you before to explain things, Junk Bonds aren't quite the same in many ways, and neither are Bond issues to acquire funds as you may or may, not know.
The reason I said it, that way I said it was simple.
Bombardier got their $1.46B filled in two issues if you recall. One for $1.2B and the other $511M correct. $250 is slated for the Bond holder in dispute, pending the resolution of the default claim case. Hopefully that has been resolved I don't remember, but I haven't heard anything about it. So I don't even know whether the Bondholders got their $250M, and went on their merry way yet. But I didn't account for the $250M because they have to keep that in hand anyways, till they resolve their dispute with that bondholder.
So, here is what actually happens. That cash they raised from those 2 offerings ($1.46B and, I'm not counting the $250M) goes into the Bomber Bank account right away, and sits there until they can settle, and pay out those funds to where they need to pay them. So they have $1.2B they raised for discharging some of the remaining debt, that some people/bondholders didn't tender their bonds, when the Bomber made those offers to buy back old debt. Some wanted to, others held out, and even, for some old (2022/23) debt the Bomber made only partial offers (or put limits on buy back amounts) to those LT, JBD because they didn't have all the funds in the time of the buyback offering. You should remember these partial buyback offers recently.
So simply putting it. The $1.2/4B extra, that I said, was in their reserves right now, to equal $3.4B aprox. in their possession, is going to be used to buy back the remaining partial LTD of 2022/23. I did say that as well in the post. Now I'm keeping my fingers crossed that, that's what will happen, because you never know with this outfit. But I'm almost certain that that money will go to most likely REDEEM the remaining of $2022/23 outstanding LTD.
Why didn't I include the $1.46B in the Long Term Debt and increase the LTD by $1.46B? Simple. Because this money will be placed very quickly by the Bomber to pay off LTD soon. May be in 2 or 3 weeks, or a couple of months at most. So technically it is short term debt, for a couple of months, and then it will be used to pay off existing unpaid 2022/23 LTD maturities. So it's a short term hold/borrow of those funds at best sitting in their reserves. I made a note of that in the post as well. That money is a short term hold, and doesn't qualify as LTD. BTW, EM & BD have said that, paying of 2021/2/3 LTD to create at least a 3 year runway for BA, was their goal, so I don't expect them to squander the funds.
This is the most correct way, I can explain to you why I said what I said in that post.
You of all people should understand this process explained to you.
In the past days of BT, CRJ, CSeries I would do my math with the sales of these divisions, hoping that the sale receipts from those divisions would go to pay off LTD debt, and the Bombardier management would just use those sales monies to plug up holes, and pay for cashburns. Making a fool of us shareholders as to the use of those funds.So this time around with just BA on the books. I have made a schedule and keep records, of the funds in, and out because I have increased my position, and therefore have much more at stake.
I've been very careful this time around because they've fooled me long enough. I hope you and other posters here have a better clarity of events now.