RE:RE:2028 notes at 6% : PositiveYou're right Pablo. This is great news.
They could be financing themselves without an LOC from now on till (Dec. 2024), their next debt maturity waiting to see the rate, they could be borrowing for next.
From what I'm seeing with this $750M placement?
My guess is that they finally took my advice of paying about 30% to 35% down, and refinancing the rest of the loans maturing. That's why they're keeping ($2B) heavy cash on hand. Until the next LTD debt maturiry comes. They are also not paying money on any interest on LOC's, and don't have their assets tied up as security.
This is a great turn of events, I think all the credit goes to BD.
PabloLafortune wrote: This is good news - last year the yield to maturity of the 7 year bonds (2027's) was in the 20% range for a while shortly after Martel took over...... The icing on the debt sundae would be a $2B credit line so they can apply most? of the $2.2B cash sitting at the bank to paying off LTD. That would save a lot of money. this is what GD does. right now Bombardier is essentially their own bank.....Canada has many positives and negatives for businesses, one of the negatives is we dont have any banks that lend money to large industrial companies like Bombardier...........