Bombardier Announces $500 Million Debt Repayment and Confirms Deleveraging Plan on Target

Executive Summary

• Bombardier confirmed it is on track to achieve its net leverage ratio target of 2.0‑2.5×.
• A $500 million debt redemption notice issued today is expected to close by February 17, 2026, bringing total long‑term debt reductions since December 2020 to $5.5 billion and generating annualized interest cost savings of over $409 million.
• The company has received recent credit‑rating upgrades to Ba3 (Moody’s) and BB‑ (S&P Global Ratings), supporting its improved financial flexibility for strategic growth initiatives.

Key Details

• Leverage Target: Net leverage ratio goal of 2.0–2.5× confirmed; original target was ~3.0× (2021) and revised in 2023.
• Debt Redemption Notice: $500 million notice issued on Dec 17, 2025; expected closing date Feb 17, 2026.
• Cumulative Debt Reduction: $5.5 billion of long‑term debt reduced since Dec 2020.
• Interest Savings: Annualized interest cost savings estimated at >$409 million as a result of the reductions.
• Credit Rating Improvements: Latest ratings – Ba3 from Moody’s and BB‑ from S&P Global Ratings.
• Strategic Implication: Enhanced liquidity and flexibility to invest in growth initiatives while continuing to focus on further leverage improvement.

Notable Quotes

“Our proactive approach to liquidity and debt management has been a cornerstone of Bombardier’s turnaround… we are in a position to invest confidently in the future of our business, all while keeping a sharp eye on opportunities to improve leverage ratios further.” – Bart Demosky, Executive Vice President and Chief Financial Officer.