Bombardier Inc. T.BBD.A

Where we sit with LTD

[BBDB859]

-The Bombers total remaining LTD is $7.3 Billion.

-They only used up $3B from the BT money. They're sitting on another $.6B there but they had some reserves to the tune of $1.8 which could be down to $1.4 now from the last Quarter..

-They're sitting on another $1.4 from the new LTD debt issue as well.

So total $3.4B on hand.

So they'll have to figure out how to best utilize their remaining money to fix the remaining LTD, and get a new LOC Facility in place, and for the remaining portion of the money on hand, they'll have to figure out exactly ($1.5B) what they need to keep on hand for operations.. 

My guess is that they will pay off another $1B LTD remaining for 2023, and maybe even take a stab at the Dec/2024 LTD, and use the rest for the remaining cash on hand for operations. Plus they'll put in place a LOC. This will put them in the clear till the end of 2024 (Dec.2024 in fact), before even thinking about the LTD. I also see them using them the remaining left over cash to figure out what cash BA really needs yearly to operate effeciently, so they don't have to pay for unnecessary interest along the way.

This is the plan I'm sure. Or a combination of these things. 

The good part of all this is that we don't have to worry about the next 4 years (includind 2021) of LTD, and the only thing this management group has to do is, compete in their Business Jet Aviation field, and get the company some profits. They set things in place on the debt and now just focuss on the business. Get those maintenance jobs from other companies for their planes back, buy, referbish and sell some of their used planes, and sell new planes both as business jets and as utility and/or military jets.

Easy right?

Oh, and the share price will take care of itself.

[flamingogold]

I might add that a missing part to these calculations is in fact what's now missing... ie. the cash sucking Airbus partnership and cancerous BT division and the resulting hit to quarterly cash flows... now gone.

[Shamhorish]

Yes, Airbus beside getting 51% for $1.00, they sucked out of bed about 950 million per year x 3years, real thief,,,,,

[stockitnow]

All of these are reflected on Bombardier debt now. Only consistent positive cash flow will address the debt. And let Airbus deal with C series. Its such a mess that AB couldn't clean up the supply chain and make and deliver the airplane fast enough to Porter. That's the reason why Porter cancelled a220 and went with EMB. Porter had gotten good deal on c series as an early customer. The

[Shamhorish]

agree with 95% of whay you said except that Airbus could not deliver c series on time because ,,,,,  i think Airbus did not want to give the c series at such discount so they created   x  and y and delayes, so porter got fed up and cancelled the deal,,, i.e air bus is winner, by not selling  to porter at a loss,,,,,,, Airbus is french,,,,they are very tricky and very

[Jim99999]

You need to check your numbers. If they have $7.3B debt and $3.4B on hand, that suggests a net debt of $3.9B. We can only wish. By my calculation, LTD is currently ~$7.35B, cash on hand is ~$2.1B, and net debt of about $5.25B Jim **N.B. My calculations include the previously announced redemption of the Mar 2022 bonds(~92M) and the previously announced partial redemption of the Oct 2022 bonds

[BBDB859]

Hey Jim. You're at it again, are you? Since you like coloring in yellow. I'll color your post in yellow as well. So maybe then, we'll start to understand eachother better. The actual, exact LTD current debt, is $7.332B. I didn't know that wanted it  good, to three decimal points. But that was the exact amount as of the time of my post. It may have changed by now, I don'

[Jim99999]

You said debt is $7.3B. You also said they have $3.4B on hand. $7.3B - $3.4B = $3.9B net debt. Those are your numbers, not mine. Your numbers on the debt are accurate, but you have made several mistakes in your cash on hand calculations.  We know that at the end of Q1, they had pro forma liquidity of $2.6B ($2B cash + ~$600M in Alstom shares). The $2B cash was made up of $1.4B reserves

[BBDB859]

This is the only simple way to explain it to you. -By answering/responding to your questions and #'s under each question of each paragraph in yellow below. BTW, you're arguing about #'s that u and I are in close agreement with. 

[Jim99999]

JFC dude, read the damn news release. They raised $260M, not $510M. The total is now $510M, as there was already $250M owing on that series. If at the time you posted they had $3.4B cash, how did the Oct 2022 debt get to $514M from $1.2B? How did the Jan 2023 debt get to $534M from $1.024B? I think you applied the payments of the June tender offer to the debt but failed to subtract those amounts

[Jim99999]

And BTW, there has been no offer for the 2026 7.35% bonds, AFAIK. Jim

[poliden]

This post has been removed in accordance with Community Policy

[Jim99999]

Ok, I think maybe I understand where the confusion is coming from.  In your original post, BBDB859, you said BBD's remaining LTD is $7.3B. I am guessing that you meant that there is $7.3B remaining of BBD's original $10.1B LTD. You then mentioned $1.4B new LTD debt issue, so I'm guessing you assumed people would realize that BBD's total LTD was now $8.7B ($7.3B + $1.4B), with