Bombardier redeems C$150 million 7.35% debentures due 2026
Bombardier Inc. redeemed all outstanding 7.35% Debentures due 2026, totaling C$150 million, reducing debt by over $1.1 billion this year. The company has lowered long-term debt by ~$6.1 billion since 2020, cutting annual interest payments by >$460 million. With no maturities until November 2030, Bombardier aims to achieve an adjusted net debt-to-adjusted EBITDA ratio of ~1.5x.

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Bombardier Inc. has redeemed all outstanding 7.35% Debentures due 2026, totaling C$150 million aggregate principal amount. The redemption was completed through the facilities of CDS Clearing and Depository Services Inc., in accordance with applicable procedures. This action follows the company's previous announcement on April 30, 2026.
Bart Demosky, Chief Financial Officer of Bombardier, highlighted the strategic impact of the redemption. "Since 2020, we have maintained a disciplined and deliberate focus on debt reduction, lowering our long-term debt by approximately $6.1 billion," Demosky stated. "This has reduced our interest payments by more than $460 million on an annualized basis."
The company has now reduced debt by over $1.1 billion this year alone. Bombardier remains committed to allocating capital toward debt reduction to achieve an adjusted net debt-to-adjusted EBITDA ratio of ~1.5x over time. With no maturities until November 2030, the company is positioned to accelerate its next phase of growth.
Key Financial Metrics
| Metric | Value |
|---|---|
| Aggregate principal amount redeemed | C$150 million |
| Coupon rate | 7.35% |
| Long-term debt reduction since 2020 | ~$6.1 billion |
| Annualized interest payment reduction | >$460 million |
| Debt reduction this year | >$1.1 billion |
| Target adjusted net debt-to-adjusted EBITDA ratio | ~1.5x |
| Next maturity date | November 2030 |
The redemption underscores Bombardier's ongoing efforts to strengthen its balance sheet and optimize capital allocation. The company's disciplined approach to debt management aims to enhance financial flexibility and support long-term growth objectives.
How will Bombardier allocate the increased cash flow from interest savings now that the major debt reduction phase is concluding?
What specific growth initiatives or capital expenditures does Bombardier plan to prioritize with its next maturity date not until 2030?
What is the expected timeline for reaching the targeted adjusted net debt-to-adjusted EBITDA ratio of 1.5x?




























