Bombardier further reduces debt
Bombardier has further reduced its debt burden by redeeming $500m of its 7.5% senior notes due in 2025.
The OEM has been restructuring its debt over the last few years, having reduced it by more than $4.5bn, or 45%, since 2020.
The debt repayment marked “an important milestone” and demonstrated “continued commitment to strengthening the balance sheet” according to Bart Demosky, executive vice president and CFO, Bombardier. He said that this translates into a “significantly improved credit risk profile”, adding that the average maturity of the firm’s long-term debt is now 4.7 years with annual interest charges reduced by more than $330m since 2020.
In January, Bombardier closed an offering of $750m senior notes due February 1st 2029, which carried a coupon rate of 7.5% per year. The company previously issued more than $2bn in senior notes in March 2019 at a comparatively high-yield to finance tender offers that were due in 2020 and 2021.
Bombardier is set to provide further updates on its capital structure and strategic progress during its Investor Day this week.