Bombardier Inc. T.BBD.A

Numbers

[bbdaerospacecnd]

Ltd=$6.5 bln 

cash: $1.8 bln

more cash from the sale of extra manufacturing facilities?

aftermarket segment: at least 4900 planes in service supported by bbd

Feasible scenario:

Revenue: 6.5 -7bln 
margins: 8-12 %

EBITDA =520- 840 mln

Interest on LTD at 6.5-7%-= $422-455

if bbd would manage to get a 3% loan of $1.8 bln for corporate purposes and throw the current cash of 1.8 bln to pay the debt, then

4.7 bln LTD at roughly 7% and 1.8 bln LTD at 3%= $383 mln interest cost per year

it gets better with any additional refinancing, margins and revenue growth

There is definitely a path upwards 

bbd will have an easier time to refinance with improved SP. Look at AMC sudden windfall with refinancing only due to reddit mob


COMMENTS?

[bbdaerospacecnd]

Some other numbers from today's trading in GME: Volume 50,566,055 Day's Range 250.00 - 413.98   sp at the close: $325 USD that's more than USD $16 bln turnover in just one stock one day trading - for the struggling retailer! Bbd's market cap today=$1.18 bln USD bbd's shorts would join GME 's fellows in

[PabloLafortune]

Aside from an outright sale or go private transaction, the 2 thing that I can think of that makes sense for the company and existing shareholders is a) a rights offering. That would bring down the debt and interest cost and bring up the share price. A large investor would have to be at the ready to subscribe to the shares not taken up by existing shareholders. And b) a convertible debentures

[bbdaerospacecnd]

I agree Options to benefit the shareholders (not necessarily in presented order of importance): 1. Sell of BA at the premium like USD $1.50-2 per share or 2. Warrants issued to the shareholders proportional to their holdings and/or to big outsiders to bring down the debt .  couple it with aggressive debt refinancing or 3. Getting big name entrepreneur (the Family shares voting

[PabloLafortune]

I thought about it (as a B shareholder) and the easiest and simplest solution is for the family (and other A shareholders?) to partner with some $$$ and take warrants for 3.1B A shares (10X the current qty) or so for 85 cents or so for net proceeds of C$2.56B or US$2B.  While this would increase the share count to 5.5B shares, it also brings the debt down to $2.7B which can be refinanced at

[bbdaerospacecnd]

7. The Family should  loan bbd some  $1-2 bln at 2-3% or/and buy some sizeable chunk of shares on the cheap . Help the company, help themselves and build a legacy for the Family name rather than milking it to the ground. As sp  rises the debt refinance becomes easier. The institutions move in. The momentum keeps growing. The Family should also vacate some board seats in favour of

[Mauserintime945]

7. It won't happen anytime soon, they left with the cash cow (BRP).

[johnney]

what do you mean by that!

[Mauserintime945]

The Family should  loan bbd some  $1-2 bln at 2-3% or/and buy some sizeable chunk of shares on the cheap 

[johnney]

I guess they will have no choice to do that, can't continue paying those high interest loans, impossible, with one division left. Hoping they will fix this fast! The market and analystes will watch that closely!

[PabloLafortune]

#7 - Good idea. Amazon did that in 1999. Convertible subordinated notes (we call it convertible debentures up here) with the conversion price at 30% above the normal share price (ie 79 cents for B shares, $1.13 for A shares). 10 years at prevailing T Bill price (4.75% at the time - that would be less than 1% now). Was heavily oversubscribed.