RE:RE:RE:ScotiaHey Stock4.
It's simple. They're at $5.5B now. Everybody missed that $100M paid recently, in either late May or early June when it was announced. Then you got Q4/24, which will bring in $250M of +FCF they say. We both know it'll be $300M +FCF (underpromise). They'll get their Reserves/cash on hand back up at the end 2024 too, to about $1.7B. So, I see them throwing an added $200M of those reserves plus the $300M +fcf to take the LTD to $5B. Now the Bart D statement. Go to the Earning report and listen to what Bart said about throwing another $1B on the LTD by the of 2025 from FCF (you look for it sorry, no time). That's $4B LTD at the end of 2025. Then at the end of 2025, they have their cash Reserves built up again to about $1.5B. So, by then we'll have the less Interest payments on the LTD, a savings to the tune of $75M to $100M I would say annually, there as well, along with 2025 CAPEX down,
and Bob's your uncle. The latest we'll get to $3.7B LTD is Q1/26 after they've figured out what they'll pay for Inventory for 2026, and the amount of their Reserves they want to hold yearly. I'll say that, if they have $1.5B in reserves, they may also choose to throw another $300M to $400M on the LTD at that time. Because they will want to by then, have a larger LOC in place from a Chartered bank, or a revolver from someone for 3%, to allow them to use OPM with such cheap interest. Therefore, they'll free up the reserves to start doing things, like reducing the LTD.
You're new here. Bart has been saying, that they want to adjust delveries so they can equalize Q1 deliveries through to Q4. So when that happens, hopefully by the end of 2024 when they will sort out Pearson production, the
Cash on hand gets replenished faster throughout the year, and they can do other things such as pay down LTD. Investment Grade doesn't come easy, without some sharp decisions. If they get cash ($250M) from the Sprint deal? Then that is surplus for them. I don't think they would want to change things at Belfast too quickly. They know exactly what they're dealing with there. Someone here even posted that, the work there is very labour intensive, so there you have it. They may cut the workforce down a little there, if they can? The problem there is, the heavy pensions they have to pay for the strong union(s).
stock4life48 wrote: ok so Airbus was also compensated $559M from Spirit for take over. Its possible we get a cash payment. I suppose it would depend on how badly in shape that section is to see how much cash we could get
I have yet to find where Bart said LTD would be reduced to those levels. They did say net debt to EBITDA would be at 2.0 to 2.5x by end of 2025, nothing even close to your 1.5x claims.