Bombardier Boosts Financial Health with $500M Senior Notes Redemption

Bombardier has successfully completed the partial redemption of US$500 million in principal of its 6.000% Senior Notes, which are due in 2028. The transaction, finalized on February 17, 2026, was reportedly funded using cash from the company's balance sheet.

This move is a key part of the Canadian aircraft manufacturer's ongoing strategy to strengthen its financial position and reduce its debt load.

A Consistent Deleveraging Strategy

The US$500 million redemption is the latest step in a multi-year effort to improve Bombardier's balance sheet. According to GlobeNewswire and Skies Mag, this repayment brings the company's total long-term debt reduction to an impressive US$5.5 billion since December 2020.

This consistent deleveraging has yielded significant financial benefits. The company has generated more than US$409 million in annualized interest cost savings, freeing up capital for future investments and operations. Bombardier has publicly stated its goal of achieving a net leverage ratio between 2.0 and 2.5x.

Improving Financial Health and Credit Ratings

Bombardier's disciplined financial management aligns with a broader trend in the aerospace and defense sector, where companies are prioritizing financial resiliency following the global pandemic. By proactively paying down debt, manufacturers enhance their flexibility to navigate market changes.

The strategy has been recognized by credit rating agencies. Bombardier has recently received multiple upgrades, including a Ba3 rating from Moody's and a BB- rating from S&P Global Ratings, signaling growing confidence in its long-term financial stability. The redemption was initiated following a notice issued on December 17, 2025, solidifying the company's commitment to its financial targets.

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