- Bombardier (TSX:BBD.A) stock investors have been made aware that the company is redeeming more of its senior notes
- The Canadian business jet manufacturer issued a notice redemption for US$338 million principal amount of its outstanding 7.12 per cent senior notes
- The aerospace company has issued a conditional notice for the partial redemption of US$450 million in outstanding senior notes with a 7.87 per cent interest rate, maturing in 2027
- Bombardier Inc. stock (TSX:BBD.A) opened trading at C$86.26 per share
Bombardier (TSX:BBD.A) stock investors have been made aware that the company is redeeming more of its senior notes.
In a news release, the Canadian business jet manufacturer issued a notice redemption for US$338 million principal amount of its outstanding 7.12 per cent senior notes that were due in 2026, which was paid using cash from its balance sheet.
The aerospace company has issued a conditional notice for the partial redemption of US$450 million in outstanding senior notes with a 7.87 per cent interest rate, maturing in 2027.
Senior notes are bonds that hold priority over other debts in the event of a company bankruptcy. When these notes are converted into company shares, they assist in reducing the company’s debt obligations.
Companies often utilize senior notes to obtain loans at more favourable interest rates than other types of debt. They generally carry lower risk compared with stocks, which usually results in lower interest rates.
Montreal-based Bombardier is focused on designing, manufacturing and servicing business jets. The aviation company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals.
Earlier this week, Bombardier unveiled its new material lounge at the London Biggin Hill Airport, the U.K.’s largest business aircraft maintenance facility.
Bombardier Inc. stock (TSX:BBD.A) opened trading at C$86.26 per share. The stock has risen 64.33 per cent year-to-date.
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(Top image: Bombardier.)
