Bombardier Inc B Stock Price, News & Analysis

Bombardier has opened its newly transformed Singapore Service Centre, now the largest OEM business aviation maintenance facility in Asia Pacific, expanding its footprint from 70,000 sq. ft. to approximately 290,000 sq. ft. The facility offers enhanced capabilities, including a full-service, environmentally-controlled paint facility and 24/7 parts depot with over $15 million in parts inventory. Emphasizing sustainability, it has solar panels, EV charging, and Sustainable Aviation Fuel availability. The centre is set to support over 2,000 business jet visits annually, enhancing customer service and operational efficiency.

Bombardier announced updates regarding its cash tender offer for up to US$350 million in senior notes, initially disclosed on June 13, 2022. As of the Early Tender Date, US$77.66 million of 7.875% Senior Notes due 2027, US$290.04 million of 7.500% Senior Notes due 2024, and US$481.12 million of 7.50% Senior Notes due 2025 were tendered. Due to oversubscription, only a portion of the 2025 notes will be accepted. By executing this tender offer, Bombardier anticipates repaying over $750 million in debt, which is projected to save nearly $60 million annually in interest costs.

Bombardier has announced the renewal of its normal course issuer bid (NCIB), starting June 28, 2022, allowing the purchase of up to 880,000 Class B shares over one year, representing approximately 1.03% of its total Class B shares. This follows a 25-for-1 share consolidation effective June 13, 2022. Of the shares purchased, about 150,000 are expected to be canceled, while 730,000 will be placed in trust for employee incentive plans. The NCIB aims to mitigate dilution from stock options and support capital management.

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.