Post by
Tempo1 on Nov 06, 2023 5:44pm
A 7% rate ?
Bombardier has a B2 Stable rating ( B for S&P). There's no magic, even with a B+ the rate would be, at least, around 7 % ( 6,75%-7,25%) for a 7 years bond.
The goal is to address the huge level of terms of 2026 ( 1,2 B$) and 2027 (1,9B$).
I understand that the market appetite has limits and making offers by 500M$ slices regularly they would have better conditions than a massive refinancing 2 years ahead.
Comment by
BBDB859 on Nov 06, 2023 5:53pm
Good point. That $1.9B B for 2027 is huge. Though, I thought it was partially redeemable even if they didn't touch till 2025. The cash from +FCF will get to that range. Remember we have 4 years to get to that. They could just be feeling the market out with this $100M. If they were real with reducing it? Why would they do it in small sums? Why not $500M?