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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 Mar 23, 2024 12:07pm
265 Views
Post# 35948764

RE:RE:RE:RE:RE:Better rates ?

RE:RE:RE:RE:RE:Better rates ?859, the cost of all of this is at least $13M that I can tell. Before & after interest is a wash but there are fees and premiums to be paid. 

Extending debt runway is always good of course especially when youre not generating sufficient cash to pay it off AND if you believe interest rates will rise. I happen to believe they're coming down and will go down further therefore, it would have been better to wait.  

Im naive of course as its kind of obvious that all 3 transactions - the $750M 2031, the  $550M 2026 and the $200M 2027 -  are tied together and issuing the 2031's to strictly pay down 2027's was probably not an option.

i always look at it from the other side. And its a good day for bondholders. Exchange 2026/2027 bonds for 2031's on a decent credit at what will turn out to probably be a fabulous rate ie bonds will trade above par down the road, AND get paid a $13,000 bonus per $1M to do so.

That said, some famous bond trader Bill G? interviewed recently said he was long 2 years and short 5-10 ie expecting short term rates to fall and long term rates to rise.
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