Bombardier Inc B Stock Price, News & Analysis

On June 22, 2022, Bombardier announced that IAMAW Local 712 members in Dorval and Saint-Laurent, Québec, ratified a new 5-year collective bargaining agreement. The company expressed satisfaction with the vote, emphasizing its commitment to collaborate with IAMAW Local 712 union leadership and its employees. The agreement highlights mutual engagement towards a successful future for both Bombardier and its workforce, reinforcing that the company's success relies on high-quality products and engaged employees. Bombardier remains a leader in aviation, known for its innovative aircraft.

Bombardier announced a share conversion privilege for its Series 2 and Series 3 Preferred Shares, effective August 1, 2022. Holders can convert shares on a one-for-one basis. Series 2 shareholders will receive a monthly floating cash dividend based on a prime rate percentage, while Series 3 shareholders will receive a fixed quarterly cash dividend for five years, pegged at 145% of the yield on five-year non-callable Government of Canada bonds. Share conversions must be submitted by July 18, 2022.

Bombardier has launched a tender offer to buy back up to $350 million of its outstanding notes. The offer focuses on its 7.875% Senior Notes due 2027 with a cap of $100 million. The tender will be funded entirely from the company's cash reserves and is set to expire on July 12, 2022. Early tendering before June 27, 2022 allows holders to receive an additional early payment of $30 per $1,000 of notes. The acceptance priority for notes is also specified, affecting possible proration of purchases.

Bombardier expressed disappointment over IAMAW Local 712 members rejecting the collective bargaining agreement renewal. Following the vote, Bombardier is exploring options and has confirmed that negotiations will resume on June 14. The company believes it is on a positive trajectory and is committed to achieving favorable outcomes for all employees, including IAMAW Local 712 members. To mitigate disruptions during the study day on June 13, Bombardier will implement a contingency plan at affected sites.

Bombardier announced a Share Consolidation of its Class A and Class B shares at a 1:25 ratio, effective June 13, 2022. This action will reduce the number of outstanding shares from approximately 308 million Class A shares and 2.134 billion Class B shares to around 12.3 million Class A shares and 85.4 million Class B shares. Following the consolidation, shares will continue to trade on the TSX under the symbols BBD.A and BBD.B. Registered shareholders will receive a letter of transmittal for the share exchange, while non-registered shareholders should check with their intermediaries.

Bombardier appointed Jianwei Zhang as Chairman of Bombardier China, effective immediately. This move underscores the company's commitment to the Chinese market, where it offers leading business jets and aftermarket services. Zhang, with over 26 years in aerospace, previously held management roles at Bombardier and is expected to strengthen ties between China and the West, enhancing the company's impact in China's business aviation sector. His leadership is seen as pivotal for Bombardier's operations in the region, particularly with the active service center in Tianjin.

Bombardier has expanded its Line Maintenance Station (LMS) at Le Bourget Airport near Paris to boost maintenance capabilities for European customers. The expansion includes over 30,000 sq. ft. of hangar space and additional technicians, allowing for enhanced light scheduled and unscheduled maintenance. This facility accommodates multiple aircraft types, including the Global 7500 and Learjet models. The initiative is part of Bombardier's strategy to improve aftermarket services and meet the growing demand from business jet customers across Europe.

Bombardier has launched the Global 8000, the fastest and longest-range business jet, featuring a top speed of Mach 0.94 and a range of 8,000 nautical miles. The aircraft boasts superior passenger comfort with the industry's lowest cabin altitude and advanced filtration systems. Current Global 7500 operators can retrofit to upgrade performance. Scheduled for service entry in 2025, the Global 8000 enhances Bombardier's position in business aviation, continuing to leverage technology from its predecessor while introducing innovative design elements for an unparalleled flying experience.

Bombardier has published an Environmental Product Declaration (EPD) for its Challenger 3500, marking it as the first super mid-size business jet to achieve this milestone. This follows the Global 7500's EPD, underscoring Bombardier's commitment to sustainability. The EPD details a comprehensive lifecycle environmental footprint, having assessed over 40,000 aircraft parts. New cabin features reduce environmental impact, while the aircraft promotes carbon neutrality and uses sustainable aviation fuel. Recognized with a Red Dot award, the Challenger 3500 merges luxury and cutting-edge technology.