Bombardier on track to reach net leverage ratio target

Executive Summary

• Bombardier Inc. confirms it is on track to achieve its net leverage ratio target of 2.0 to 2.5 times, following a $500 million debt redemption notice announced on December 17.
• The company has reduced its long-term debt by $5.5 billion since December 2020, resulting in annualized interest cost savings exceeding $409 million.
• Bombardier has received multiple credit rating upgrades, most recently reaching a Ba3 rating from Moody's and a BB- rating from S&P Global Ratings.

Key Details

• Debt Redemption: A $500 million debt redemption notice was announced on December 17, expected to close by February 17, 2026.
• Debt Reduction: Total long-term debt reduced by $5.5 billion since December 2020.
• Cost Savings: Annualized interest cost savings of more than $409 million generated from debt reduction efforts.
• Leverage Targets:
  • Original 2021 target: Approximately 3.0 times net leverage ratio.
  • Revised 2023 target: 2.0 to 2.5 times net leverage ratio.
• Credit Ratings:
  • Moody's: Ba3
  • S&P Global Ratings: BB-
• Strategic Context: The debt management strategy is part of a broader turnaround focused on responsible capital deployment and maintaining flexibility for strategic growth initiatives.

Notable Quotes

• "Our pro-active approach to liquidity and debt management has been a cornerstone of Bombardier's turnaround, and reflects the foundational strategy that was set and flawlessly executed by our disciplined team," said Bart Demosky, executive vice-president and chief financial officer. "By continuously prioritizing debt reduction and strengthening liquidity, Bombardier is on track to meet its stated long-term deleveraging targets, and, in doing so, we have enhanced the company's resiliency and financial flexibility."