Bombardier retires US$500 million in notes and secures jet order, boosting its turnaround narrative
Bombardier is accelerating its balance-sheet cleanup, planning to retire US$500m in debt early as fresh defence work from Ottawa helps support cash flow and investor sentiment.
According to BNN Bloomberg, Bombardier will repay US$500m in senior notes next year, ahead of their 2028 due date, as part of its ongoing deleveraging push.
With this move, the company said it will have reduced long-term debt by US$5.5bn since December 2020 and cut annual interest costs by more than US$409m.
BNN Bloomberg also reported that Bombardier is targeting an adjusted net debt to adjusted EBITDA ratio of two to 2.5, and chief financial officer Bart Demosky called its “proactive approach to liquidity and debt management” a cornerstone of its turnaround.
On the revenue side, Bloomberg reported that the Royal Canadian Air Force ordered six Global 6500 aircraft from Bombardier in a deal worth about $753m for multi-role missions.
Canada’s procurement department said the jets will replace the CC-144 Challenger fleet, which currently transports VIPs such as the prime minister and Governor General.
The aircraft will also “perform worldwide utility flights and support missions such as aeromedical evacuations, disaster relief, humanitarian aid and national security operations.”
Bombardier said the contract, valued at about US$400m based on list price, includes training, maintenance and military modifications, and Bloomberg noted that first delivery is expected in summer 2027.
Bombardier’s share price rose as much as 4.5 percent in Toronto following the announcement, trading at $221.58 as of 2:14 pm.
The same report said the order comes under a new defence investment agency created after the November federal budget pledged $82bn over five years for Canada’s military, including support for businesses in the defence and security sector.
