Bombardier extends credit facilities
TORONTO, March 27
TORONTO, March 27 (Reuters) - Bombardier Inc extended its credit facilities by one year to May 2017 for its transportation unit and to June 2017 for its aerospace division, the company said on Thursday.
The Montreal-based manufacturers revolving credit facilities also received one-year extensions to March 2016 for Bombardier Transportation and June 2017 for Bombardier Aerospace.
Investors have been keeping a close eye on Bombardier`s balance sheet as delays in the launch of its CSeries aircraft have increased the cost of the development program to $4.4 billion.
"The extension provided does highlight the comfort Bombardier's syndicate banks have on the company's business plans and balance sheet despite high leverage, in our view," RBC Capital markets analyst, Walter Spracklin, wrote in a client note.