Bombardier Inc. T.BBD.A

Why?

[Lukegermany]

Why does the Bomber don't buy the bonds back on the Market.

In that moment there are a ask side for the Bonds
2025 nearly 1,5 Million at 91,53%(1,37 Million)
2027 nearly 1.3 Million at 90,87%(1,18 Million)

only this morning wit these 2 bonds (and there are many others to do so) the bomber could save 
0,25 Million EUR in debt + the high interest on this bonds.

Maybe this is no much money on the first look, but in my thought every dollar/eur counts for them and they should take this offers. I looked the last days and every day they could buy some bonds back, so they would save more an more money.

My only explanation is that they don't need to do this cuase they have something very positive on their handat 04.03.2021. Otherwise it would be careless not to buy back the debt cheaper at market.

[lb1temporary]

I think that they will focus on the short term bonds to lower the pressure on the 2021/2022 cash flow. Its more important than saving 10% on the 2025 reimbursment. The difference in interest rate is low 6,12% VS 7,5% ( even with the 10% bonds in less). The good news is that the discount is only 8,5% and 9,1 % for so long terms. A sign of confidence from the market that this bonds will be

[Jim99999]

Having paid out the credit facility, they have about $1.5B due this year. About $1B of that is at 8.75%. If they can not arrange suitable refinancing, they will have to pay out these amounts. Therefore, they must be careful how they use the Alstom funds until the refinancing picture is clear. Jim

[johnney]

Do you know when this year, for $1.5B due!

[Jim99999]

About $500M due May 15, 2021, and about $1B due Dec 1, 2021. Jim

[johnney]

Thanks Jim for your answer!!

[PabloLafortune]

Jim, thank you for your contribution. I for one didn't realize how much was due in 2021. Explains the BT sale IMO.  By the way, I was thinking if the govt were to help it would be better if there were precedents. For example, line of credit - precedent now exists. Investment in shares on the open market - precedent (Fidelity). Convertible Loans many precedents recently.  Otherwise

[Jim99999]

Yeah, with $1.5B due this year and a total of ~$4.5B due in the next 23 months, they kinda had no choice. If they hadn't got that cash in hand, they would be at the mercy of the lenders come refinancing, and we would be looking at 10% instead of (hopefully) 5-6%. Jim

[PabloLafortune]

This is indeed Bombardier's sad reality. They're not _ _ _ _ _ who can make a phone call and the "broken" bond market suddenly has insatiable demand.

[johnney]

Why, cause P.B. is not bright enough to think about it, as simple as that!