Bombardier Further Eases Debt Burden
Bombardier redeemed $500 million in principal amount of notes due in 2025, a move that continues to deleverage the debt-ladened company.
three Bombardier Globals in flight formation
Bombardier redeemed $500 million in principal amount of notes due in 2025, a move that continues to deleverage the debt-ladened company. (Photo: Bombardier)

Bombardier continues to chip away at its debt burden with the announcement that it had redeemed $500 million in principal amount of its 7.5 percent senior notes due in 2025. The move comes as the company has reduced its debt by more than $4.5 billion over the past two years, marking a 45 percent reduction since 2020, according to Bart Demosky, executive v-p and CFO, who added these steps translate into a “significantly improved" credit risk profile.

"This debt repayment marks another important milestone in our deleveraging journey and demonstrates our continued commitment to strengthening our balance sheet,” Demosky said, adding the average maturity of its long-term debt is now 4.7 years and annual interest charges are now $330 million less than in 2020, before it became a pure-play business aviation company in early 2021.

Loading…