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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Comment by PabloLafortuneon Aug 24, 2022 11:29am
145 Views
Post# 34917086

RE:RE:RE:RE:Other Assets and Liabilities - revised analysis

RE:RE:RE:RE:Other Assets and Liabilities - revised analysisThe goal IMO should be $3B LTD ($2B net debt) paying 5% interest..  I see 7 ways of getting there. 1st, backlog which is what the first half of 2022 debt reduction was based upon.  2nd, operating cashflow (EBIT less interest) of course (could be $1B over the next 30 months), 3rd b/s mgmt as discussed. 4th, refinancing (they're paying 8%, Textron is at 5% effective based on what their bonds are trading at) based on better ratios (increase revenue, reduce debt), 5th a secured LoC (as that would release some of the cash on hand that sits there probably because of the fluctuating nature of contract liabilities) which doesn't reduce net debt but certainly reduces interest (as the secured LoC would probably sit there unused), 6th asset sale (anything left to sell?) and last but not least, convertible debentures. Convertible debentures is of particular interest to me not so much because it would save interest (which it does) and not because the proceeds would be used to pay back long term debt and the debentures would eventually be converted into equity (which it usually is but not always) but because the interest savings could be used theoretically to buy back shares which would make the convertible debenture net net - much less dilutive.  Based on the above list, its my opinion that they can get to the aforementioned debt goal by Dec 31 2025.  Anyway, like I said, at a $32 share price, a lot more upside than downside.  GLTA, YMMV.
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