Bombardier Inc. T.BBD.A

On the debt

[clubhouse19]

If there is any a time to make a public offering to take care of the debt in any part, would not this be close to the enviroment to do this ?

I would think the participation interest would be way up there considering what has been happening with much less effect on dilution.
may be more of a possibility assuming this continues.

[BBDB859]

I would guess you'd think so. But just off the cuff, I would say NO. Because they are doing well right now. The FCF savings is huge right now and it's getting higher as the spending cycle has almost ended, other than Pearson. But even Pearson is ending by the end of 2022. So at this time, we would get diluted with a public offering. So I don't see the need. If at the end of 2022 the

[clubhouse19]

Not meant  right now, but the opportunity is more and more presenting itself as a viable option.  Dilution would be a minimal  factor if all the money was put towards the debt as the book value per share would remain theoretically the same. Less and less incentive needed to participate. A convertible offering would also be possible IMO.   2023 into 2024, all things equal

[BBDB859]

Hey Club. The LTD is going down $4B by then of 2024. By the end of 2025 we'll probably get down to to $3B LTD. Our payments yearly will go $250M. Why should we get diluted. We paid the heftiest price with this RS last year, we don't need this dilution too. JMHO.

[clubhouse19]

I equate dilution to increased number of shares and company book value per share going down  Paying off debt does not do that and FCF can be used for growth  along with R & D. Like I said. a more viable option now than before . [quote=BBDB859]Hey Club. The LTD is going down $4B by then of 2024. By the end of 2025 we'll probably get down to to $3B LTD. Our payments yearly will

[raphaelle2]

IMO I think ( and hope) that public offering would be the best way to launch the commercial development of their new eco jet design when the proof of concept is completed. In 2- 3 years ?? The best way to both clear the debt and get some reserve  funds for serious development. Hopefully with a well established partner. Most likely US ? After 2025  I think that Martel will be eager to

[MyNameIsNobody]

What raphaelle2 said is kind of most likely it as far as I know because, if I remember correctly, Eric Martel said a while ago that their next project is likely to be done in a partnership... they won't go for a 'We take it on by ourselves Cseries' endeavor again. So tackling the debt with good management and steady repayments is still #1.  Another thing on future projects...EM

[thelostarc]

All fair points. Agreed, they should pay off debt incrementally with free cash flow. Developing a commercial aircraft by themselves is definitely not the way to go. However, venturing into emerging technologies may be. We have the complementary assets to enter the urban aerial transport industry, which is growing a lot. We also have the opportunity to get into space aviation. There is also room

[thelostarc]

Why would we issue equity to pay down debt? As far as I can see, the debt is not a problem. Paying it off with free cash flows going forward is fine. And when there are projects that have higher probability-weighted rates of returns, management can decide whether more prudent to pay debt vs. pursue project. I think when our market cap equity is anywhere above $10Bn (share price north of $100

[thelostarc]

Why do we need to a public offering? The cost of equity would be much higher than the cost of debt at this point. We can naturally delever the business using free cash flows, why issue more shares... in fact, the goal of deleveraging the balance sheet using money from plane and service sales is one factor that keeps management on track to deliver.

[clubhouse19]

There is plenty of time and not said of any imminent timing. Right now with the present price about 13.5 million shares would needed to used for any kind of offering including associated costs for the total LTD  repayment. Just round numbers and certainly not suggesting this to be accurate..there are better qualified people for that . This is just IMO a viable option depnding on the company&