NoWay
It's time to play the game
Scusa Gion... sei sicuro del prezzo CGG?
Ieri zoro-aster l'ha presa a 94... è successo qualcosa?
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
- Creatore Discussione TRADING_IDEAS
- Data di Inizio
- Stato
Scusa Gion... sei sicuro del prezzo CGG?
Ieri zoro-aster l'ha presa a 94... è successo qualcosa?
di sicuro c'è solo la morte
11.25% Yankee bonds from IAM Gold, BB-/B1 rated, matures Oct 2020
iamgold.png
EThis week, we look north once again to our Canadian neighbors for a Yankee bond issue from a gold mining company that is making spectacular progress in reducing costs and increasing production. IAMGold, which we first reviewed in September 2014, has continued to fine tune its operations. For 2014, it decreased all-in cash costs (AISC) per ounce of mined gold by 12%, while increasing its production by 40%. However, the most notable statistic for this company is the robust amount of cash, cash equivalents and gold on hand, a whopping USD $833 million. With this level of cash, we think the default risk for this USD $650 million Yankee bond issue is significantly reduced. Gold prices appear to have begun a recover from their twelve month low of $1,142 per ounce in early November 2014 and now up to approximately $1,285 per ounce, a gain of roughly 12%. Even with the uncertainty of gold prices, IAMGold appears to be positioned remarkably well to endure the ups and downs of the commodity market. Therefore, we believe these 5 year, BB-/B1 rated, 6.75% couponed bonds from IAMGOLD, currently discounted to about 82 and indicating a yield to maturity over 11.25%, offer an excellent return in U.S. dollars relative to the risks we can identify, and have marked them for an overweight position within our FX1 and FX2 portfolios.
About the Issuer
Originally founded in 1991, IAMGOLD currently has a stake in six operating gold mines on three continents as a result of numerous joint ventures, acquisitions and mergers. It currently has joint venture interests at its Sadiola, and Yatela mines in Africa. It holds a 90% stake in the Essakane mine, also in Africa (Burkina Faso) and a 95% stake in the Rosebel mine, located in South America (Suriname).
In July of 2014, IAG brought its newest mine, Westwood, to full commercial production. Westwood is a significant addition to IAMGOLDS’s portfolio of mines. This mine is located amidst one of the biggest and richest gold mining areas in Canada, containing several significant gold deposits. This mine is 100% owned and operated by IAG. One of the significant factors of the Westwood mine is its average reserve grade.
Average reserve grade is measured in grams per ton (g/t). A gold mine with an average grade of 1.5 g/t, means that every ton of dirt mined will yield 1.5 grams of gold. The average grade across all of IAG’s mines is only 1.2 g/t. However, the Westwood mine has an average grade of 10 g/t, more than 7 times greater than the average for all of the other IAG gold mines. This translates to a lower price per ounce, with less labor and processing needed to gain access to the gold. Because of this higher average reserve grade, Westwood, in full commercial production, will effectively lower the overall cost per ounce of mined gold across all of IAG’s mines.
IAMGOLD continues to make progress in reducing costs, while improving production. It implemented cost cutting efforts across the company in 2013, achieving $125 M in cost reduction. This translated to a reduced, all-in sustaining cost (AISC) per ounce of gold of $1,232. Cost reductions continued in 2014, which included a 40% reduction in its executive team in November 2014. AISC per ounce decreased in each consecutive quarter for 2014, going from $1,181 per ounce in Q1 2014, down to $1,050 in Q4 2014, a 12% decrease. This is below its low end guidance set for 2014 of $1,150 per ounce. IAG is projecting $75 per ounce lower for 2015.
In addition, recent declining oil prices will only add to IAG’s savings in production costs. A major contributor to the cost of mining is the price of diesel. Much of the energy needed to power the equipment needed for mining activities is provided by diesel fuel. As the cost of oil has roughly been cut in half in the past year, the cost of diesel has also decreased, down 38% in the past twelve months. Combined with IAG’s continuing successful efforts to bring down costs, IAG’s price per ounce of mined gold should continue to decrease in 2015.
Although IAG has continued to bring down production costs, decrease capital expenditures and trim its executive team, it has continued to do so while increasing production. For 2014, IAG went from producing 172,000 ounces in Q1 to producing 241,000 ounces in Q4, an increase of 40%. This increase reflects the Westwood mine coming to full production as well as a stellar 33% increase in the Essakane mine.
In October 2014, IAG agreed to sell Niobec, its niobium mine, to a group of companies led by Magris Resources for $500 million in cash. The sale was completed in January 2015 and added USD $500 million in cash to IAG’s liquid resources. An additional $30 million will be paid to IAG when the adjacent rare earth element (REE) deposit goes into production. A 2% gross proceeds royalty will be payable on any REE production.
Financials
Perhaps the most impressive financial figure on IAG’s balance sheet is the value of its cash and cash equivalents. As of December 31, 2014, IAG had cash, cash equivalents and gold bullion equal to USD $333 million. Add to this, the $500 million in cash from the Niobec sale to total IAG’s current cash, gold, and cash equivalents of USD $833 million. This exceeds the company’s current USD $650 million notes due 2020.In addition to the large amount of cash, cash equivalents and gold, IAMGold also has access to a credit line totaling USD $500 million, bringing its total liquidity to USD $1.3 billion.
For the nine months ended September 30, 2014, IAG had operating income of USD $54.3 million with interest expense for that same time period of USD $10.9 million for a very healthy interest coverage ratio of 4.98.
Gold mining requires large investments in hard assets such as heavy machinery as well as substantial investment amounts to purchase the land where mines are located. On IAG’s balance sheet for year-end 2013, these mining assets are valued at $2.5 billion. These should also be saleable assets should IAG require additional funds to pay bondholders.
Risks
The default risk is IAMGOLD’s ability to perform. The company currently has an unheard of level of cash and liquidity totaling USD 1.3 billion, which is double the outstanding debt amount of this bond issue of USD $650 million. Considering IAG’s excellent available cash and liquidity, the default risk for these notes is extremely low.
Since its main revenue comes from the sale of gold on the open markets, its revenue stream is sensitive to movements in the price of gold. Gold prices can be affected by numerous factors, such as the strength of the US dollar, global economic conditions, supply and demand, interest rates, and inflation rates, all of which are beyond IAG’s control. Since our last review of IAMGOLD in September 2014, gold prices have ranged between $1,140 per ounce in November 2014, and nearly $1,300 per ounce in late January 2015. Prices have had a seesaw climb since late December 2014, increasing from $1,181 per ounce to $1,290 per ounce, a 9% increase.
IAG has significant exposure to geopolitical risk through its operations in Africa and South America. IAG’s Essakane mine, located in Africa, and their Rosebel mine, located in South America, together produced 70% of its gold production in 2013. The company continues to work on strengthening its relationship with the governments in both locations. As a result of these ongoing improvements, IAG was able to negotiate better tax rates and tariffs in Burkina Faso. (Essakane mine).
IAG has producing mines in several countries including Suriname, Mali, and Burkina Faso. As a result, it is exposed to currency fluctuations for the cost of production in these mines. While IAG is headquartered in Canada, there is also exposure to rate fluctuations between the Canadian and US dollar.
These 8.75% IAMGOLD US dollar bonds have similar features and risks to other Yankees bonds such as the such as 8.25% HudBay Minerals, the 8.25% Gajah Tunggal, or the 8.45% Camposol S.A bond, which we have reviewed previously on our Bond-Yields.com blog.
Summary and Conclusion
IAMGOLD has done an outstanding job decreasing costs while increasing production. Its balance sheet metrics are exceptional, with a robust cash level that currently exceeds the amount of its debt, providing a virtual safety net for bondholders. With its Westwood mine now in full production, and the company’s ongoing commitment to keeping production costs and capital expenditures low, IAMGOLD is prepared to endure the uncertainty of shifting gold prices. Consequently, we believe these high yielding (over 11.25%) U.S. dollar bonds will provide increased cash flow and solid returns within our global high yield Fixed-Income1.com and Fixed-Income2.com portfolios.
Issuer: IAMGOLD Corporation
Coupon: 6.75%
Maturity: 10/1/2020
Ratings: B1/BB-
Pays: Semi-annually
Price: 81.5 (2/11/2015)
Yield to Maturity: ~11.27%
iamgold.png
EThis week, we look north once again to our Canadian neighbors for a Yankee bond issue from a gold mining company that is making spectacular progress in reducing costs and increasing production. IAMGold, which we first reviewed in September 2014, has continued to fine tune its operations. For 2014, it decreased all-in cash costs (AISC) per ounce of mined gold by 12%, while increasing its production by 40%. However, the most notable statistic for this company is the robust amount of cash, cash equivalents and gold on hand, a whopping USD $833 million. With this level of cash, we think the default risk for this USD $650 million Yankee bond issue is significantly reduced. Gold prices appear to have begun a recover from their twelve month low of $1,142 per ounce in early November 2014 and now up to approximately $1,285 per ounce, a gain of roughly 12%. Even with the uncertainty of gold prices, IAMGold appears to be positioned remarkably well to endure the ups and downs of the commodity market. Therefore, we believe these 5 year, BB-/B1 rated, 6.75% couponed bonds from IAMGOLD, currently discounted to about 82 and indicating a yield to maturity over 11.25%, offer an excellent return in U.S. dollars relative to the risks we can identify, and have marked them for an overweight position within our FX1 and FX2 portfolios.
About the Issuer
Originally founded in 1991, IAMGOLD currently has a stake in six operating gold mines on three continents as a result of numerous joint ventures, acquisitions and mergers. It currently has joint venture interests at its Sadiola, and Yatela mines in Africa. It holds a 90% stake in the Essakane mine, also in Africa (Burkina Faso) and a 95% stake in the Rosebel mine, located in South America (Suriname).
In July of 2014, IAG brought its newest mine, Westwood, to full commercial production. Westwood is a significant addition to IAMGOLDS’s portfolio of mines. This mine is located amidst one of the biggest and richest gold mining areas in Canada, containing several significant gold deposits. This mine is 100% owned and operated by IAG. One of the significant factors of the Westwood mine is its average reserve grade.
Average reserve grade is measured in grams per ton (g/t). A gold mine with an average grade of 1.5 g/t, means that every ton of dirt mined will yield 1.5 grams of gold. The average grade across all of IAG’s mines is only 1.2 g/t. However, the Westwood mine has an average grade of 10 g/t, more than 7 times greater than the average for all of the other IAG gold mines. This translates to a lower price per ounce, with less labor and processing needed to gain access to the gold. Because of this higher average reserve grade, Westwood, in full commercial production, will effectively lower the overall cost per ounce of mined gold across all of IAG’s mines.
IAMGOLD continues to make progress in reducing costs, while improving production. It implemented cost cutting efforts across the company in 2013, achieving $125 M in cost reduction. This translated to a reduced, all-in sustaining cost (AISC) per ounce of gold of $1,232. Cost reductions continued in 2014, which included a 40% reduction in its executive team in November 2014. AISC per ounce decreased in each consecutive quarter for 2014, going from $1,181 per ounce in Q1 2014, down to $1,050 in Q4 2014, a 12% decrease. This is below its low end guidance set for 2014 of $1,150 per ounce. IAG is projecting $75 per ounce lower for 2015.
In addition, recent declining oil prices will only add to IAG’s savings in production costs. A major contributor to the cost of mining is the price of diesel. Much of the energy needed to power the equipment needed for mining activities is provided by diesel fuel. As the cost of oil has roughly been cut in half in the past year, the cost of diesel has also decreased, down 38% in the past twelve months. Combined with IAG’s continuing successful efforts to bring down costs, IAG’s price per ounce of mined gold should continue to decrease in 2015.
Although IAG has continued to bring down production costs, decrease capital expenditures and trim its executive team, it has continued to do so while increasing production. For 2014, IAG went from producing 172,000 ounces in Q1 to producing 241,000 ounces in Q4, an increase of 40%. This increase reflects the Westwood mine coming to full production as well as a stellar 33% increase in the Essakane mine.
In October 2014, IAG agreed to sell Niobec, its niobium mine, to a group of companies led by Magris Resources for $500 million in cash. The sale was completed in January 2015 and added USD $500 million in cash to IAG’s liquid resources. An additional $30 million will be paid to IAG when the adjacent rare earth element (REE) deposit goes into production. A 2% gross proceeds royalty will be payable on any REE production.
Financials
Perhaps the most impressive financial figure on IAG’s balance sheet is the value of its cash and cash equivalents. As of December 31, 2014, IAG had cash, cash equivalents and gold bullion equal to USD $333 million. Add to this, the $500 million in cash from the Niobec sale to total IAG’s current cash, gold, and cash equivalents of USD $833 million. This exceeds the company’s current USD $650 million notes due 2020.In addition to the large amount of cash, cash equivalents and gold, IAMGold also has access to a credit line totaling USD $500 million, bringing its total liquidity to USD $1.3 billion.
For the nine months ended September 30, 2014, IAG had operating income of USD $54.3 million with interest expense for that same time period of USD $10.9 million for a very healthy interest coverage ratio of 4.98.
Gold mining requires large investments in hard assets such as heavy machinery as well as substantial investment amounts to purchase the land where mines are located. On IAG’s balance sheet for year-end 2013, these mining assets are valued at $2.5 billion. These should also be saleable assets should IAG require additional funds to pay bondholders.
Risks
The default risk is IAMGOLD’s ability to perform. The company currently has an unheard of level of cash and liquidity totaling USD 1.3 billion, which is double the outstanding debt amount of this bond issue of USD $650 million. Considering IAG’s excellent available cash and liquidity, the default risk for these notes is extremely low.
Since its main revenue comes from the sale of gold on the open markets, its revenue stream is sensitive to movements in the price of gold. Gold prices can be affected by numerous factors, such as the strength of the US dollar, global economic conditions, supply and demand, interest rates, and inflation rates, all of which are beyond IAG’s control. Since our last review of IAMGOLD in September 2014, gold prices have ranged between $1,140 per ounce in November 2014, and nearly $1,300 per ounce in late January 2015. Prices have had a seesaw climb since late December 2014, increasing from $1,181 per ounce to $1,290 per ounce, a 9% increase.
IAG has significant exposure to geopolitical risk through its operations in Africa and South America. IAG’s Essakane mine, located in Africa, and their Rosebel mine, located in South America, together produced 70% of its gold production in 2013. The company continues to work on strengthening its relationship with the governments in both locations. As a result of these ongoing improvements, IAG was able to negotiate better tax rates and tariffs in Burkina Faso. (Essakane mine).
IAG has producing mines in several countries including Suriname, Mali, and Burkina Faso. As a result, it is exposed to currency fluctuations for the cost of production in these mines. While IAG is headquartered in Canada, there is also exposure to rate fluctuations between the Canadian and US dollar.
These 8.75% IAMGOLD US dollar bonds have similar features and risks to other Yankees bonds such as the such as 8.25% HudBay Minerals, the 8.25% Gajah Tunggal, or the 8.45% Camposol S.A bond, which we have reviewed previously on our Bond-Yields.com blog.
Summary and Conclusion
IAMGOLD has done an outstanding job decreasing costs while increasing production. Its balance sheet metrics are exceptional, with a robust cash level that currently exceeds the amount of its debt, providing a virtual safety net for bondholders. With its Westwood mine now in full production, and the company’s ongoing commitment to keeping production costs and capital expenditures low, IAMGOLD is prepared to endure the uncertainty of shifting gold prices. Consequently, we believe these high yielding (over 11.25%) U.S. dollar bonds will provide increased cash flow and solid returns within our global high yield Fixed-Income1.com and Fixed-Income2.com portfolios.
Issuer: IAMGOLD Corporation
Coupon: 6.75%
Maturity: 10/1/2020
Ratings: B1/BB-
Pays: Semi-annually
Price: 81.5 (2/11/2015)
Yield to Maturity: ~11.27%
Joe Silver
Forumer storico
Dove? Su IW non risulta nemmeno censita
PS: Mi correggo: ora è censita, evidentemente a richiesta tua o di NoWay. Ora provo anchio.
Ultima modifica:
L'ho fatta censire stamane, se provi ora ti esceDove? Su IW non risulta nemmeno censita
Joe Silver
Forumer storico
Transocean
Fatto a 85,23. Sono anch'io della partita. Vediamo se questa nobile decaduta riesce a galleggiare in attesa di una ripresina dell'attività di esplorazione. Comunque le previsioni sono per una stallo piuttosto lungo...
L'ho fatta censire stamane, se provi ora ti esce
Fatto a 85,23. Sono anch'io della partita. Vediamo se questa nobile decaduta riesce a galleggiare in attesa di una ripresina dell'attività di esplorazione. Comunque le previsioni sono per una stallo piuttosto lungo...
BONDS TO CONSIDER:Fatto a 85,23. Sono anch'io della partita. Vediamo se questa nobile decaduta riesce a galleggiare in attesa di una ripresina dell'attività di esplorazione. Comunque le previsioni sono per una stallo piuttosto lungo...
Transocean (NYSE:RIG) - 2.5% of 10/15/17 trading at 88, 7.5% YTM
Transocean is the leading provider of offshore contract drilling for oil and gas companies around the world, with 91 rigs. The bonds in question mature in about 2.5 years, and were trading at over 102 a few months ago to yield less than 2.5%.
Credit Positives:
Large company with tremendous resources. $6 billion market cap and $13+ billion enterprise value. The investment grade ratings (although a likely downgrade coming and the market is not treating this company as investment grade) reflects a long operating history and scale. While the stock is down sharply and analysts have downgraded the stock, this is in the context of limited equity upside for this company, not bankruptcy risk (e.g. Jefferies came out with a view of EBITDA declining to $1.77 billion from $2.25B in 2016).
RIG has $2.6 billion in cash and a $3 billion revolver that provides plenty of liquidity to ride out the storm for several years.
Contracted fleet committed at various and decreasing levels into 2017.
Blue chip customer base from national oil companies to the majors that will keep on drilling even with low oil prices.
Credit Negatives:
Sustained low oil prices will pressure rig utilization and margins.
Uncertainty past 2016-2017 when many contracts roll off.
Also worth a close look: Atwood Oceanics and Weatherford Intl, both with bonds yielding 7-8%. RIG bonds simply offer a 2017 maturity date adding a compelling feature.
azetaelle
investitore(s)qualificato
non ci capisco una mazza! o sono tonto io (non lo escludo) oppure in grassetto ci sono scritti valori che fanno a pugni con quelli scritti poco sotto
All amounts in this press release are in U.S. dollars unless otherwise indicated. This press release contains both IFRS and non-GAAP measures. Non-GAAP measures are defined and reconciled to the most comparable IFRS measures in the Corporation’s MD&A. See Caution regarding non-GAAP measures at the end of this press release.) Revenues of $20.1 billion, compared to $18.2 billion for the last fiscal year
EBIT before special items(1) of $923 million, or 4.6% of revenues, compared to $893million, or 4.9%, for the last fiscal year
Adjusted net income(1) of $648 million (adjusted EPS(1) of $0.35), compared to $608million (adjusted EPS of $0.33) for the last fiscal year
Free cash flow usage(1) of $1.1 billion, including a net investment of $2.0 billion in PP&E and intangible assets, compared to a usage of $907 million for the last fiscal year, including a net investment of $2.3 billion in PP&E and intangible assets
Available short-term capital resources of $3.8 billion, including cash and cash equivalents of $2.5 billion as at December 31, 2014, compared to $4.8 billion and $3.4billion, respectively, as at December 31, 2013
Backlog of $69.1 billion as at December 31, 2014, compared to $69.7 billion as at December 31, 2013
(1) See Caution regarding non-GAAP measures at the end of this press release.
Bombardier today reported its financial results for the fourth quarter and the year ended December 31, 2014. Revenues totalled $6.0 billion for the quarter, compared to $5.3 billion for the same period last fiscal year, which represents an increase of 14.6% excluding currency impacts. For the year, revenues totalled $20.1 billion, an increase of 10.8% excluding currency impacts, compared to $18.2 billion last year.
For the fourth quarter ended December 31, 2014, earnings before financing expense, financing income and income taxes (EBIT) was negative $1.2 billion, or (20.2)% of revenues, compared to EBIT of $185 million, or 3.5% for the same period last fiscal year. For the year, EBIT was negative $566 million, or (2.8)%, compared to EBIT of $923 million, or 5.1% last fiscal year. For the fourth quarter ended December 31, 2014, EBIT before special items totalled $156 million, or 2.6% of revenues, compared to $186 million or 3.5% for the same period last fiscal year. For the year, EBIT before special items totalled $923 million, or 4.6%, compared to $893 million, or 4.9%, last fiscal year.
On an adjusted basis, net income amounted to $83 million, or earnings per share (EPS) of $0.04, for the fourth quarter ended December 31, 2014, compared to $129 million, or $0.07, for the same period the previous year. For the year, on an adjusted basis, net income amounted to $648 million, or EPS of $0.35, compared to $608 million, or EPS of $0.33, last fiscal year. For the fourth quarter ended December 31, 2014, net loss totalled $1.6 billion, or EPS of $(0.92), compared to net income of $97 million, or $0.05, for the same period the previous year. For the fiscal year 2014, net loss amounted to $1.2 billion, or EPS of $(0.74), compared to net income of $572 million, or $0.31, last fiscal year. The net loss for the fourth quarter and for fiscal year 2014 is mainly due to the charge in special items related to the decision to pause the Learjet 85 business aircraft program recorded in the fourth quarter of fiscal year 2014.
For the three-month period ended December 31, 2014, free cash flow (cash flows from operating activities less net additions to property, plant and equipment (PP&E) and intangible assets) amounted to $590 million, compared to $771 million for the same period last year. For the year, free cash flow usage amounted to $1.1 billion, compared to a usage of $907 million last fiscal year. As at December 31, 2014, available short-term capital resources of $3.8 billion included cash and cash equivalents of $2.5 billion, compared to $4.8 billion and $3.4 billion, respectively as at December 31, 2013. The overall backlog amounted to $69.1billion as at December 31, 2014, compared to $69.7 billion as at December 31, 2013.
"We continue to take action to put in place the right conditions to deliver profitable growth. Thanks to the lighter structure implemented in the Aerospace and Transportation business segments, we will fully benefit from the great potential of our new products,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.
“We’ve reached significant milestones in our development programs, such as the assembly of the Global 7000 first Flight Test Vehicle (FTV), which is progressing well.The CSeries flight test program has logged close to 1,000 flight hours and the performance of the aircraft is meeting or exceeding our expectations. The first FTV for the CS300 aircraft has joined the flight test program and should accomplish its inaugural flight by the end of the first quarter. On the Transportation side, after completing the mandatory 600,000 km test run, the ZEFIRO380 very high speed train has been homologated and the first deliveries are expected to occur in the next few weeks. Our total backlog of more than $69 billion gives us great visibility on manufacturing revenues for the next three years. And with the financing plan announced today, we are ensuring Bombardier has flexibility and a solid financial profile."
"We have one overriding objective at Bombardier: to become a true high performance organization with improved margins and better execution. We are determined and focused on delivering," emphasized Mr. Beaudoin.
Bombardier announced today that Mr. Laurent Beaudoin is retiring as Chairman of the Board of Directors after more than 50 years at the helm of the Corporation. He will remain on the Board with the honorary title of Chairman Emeritus. Mr. Pierre Beaudoin is appointed Executive Chairman, while Mr. Alain Bellemare becomes President and Chief Executive Officer and a member of the Board of Directors. These appointments will all be effective February 13, 2015.
“Laurent Beaudoin is retiring as Chairman after dedicating his entire life to building Bombardier," continued Pierre Beaudoin. “The Board and I wish to thank Laurent for his passion and his entrepreneurial spirit all through his tenure. Under his guidance, Bombardier became more than an iconic Canadian company, it became a global mobility leader with 74,000 employees and a presence in more than 60 countries across five continents. Our vast product portfolio, largely recognized as the best in the world, is part of his legacy. Bombardier would not be what it is today without his vision and leadership.”
“I wish to welcome Alain Bellemare to Bombardier. Alain is an experienced executive who acquired a deep knowledge of the manufacturing sector while assuming leadership positions in various industries. Throughout his 18-year career at United Technologies Corp. (UTC), notably at Pratt & Whitney, he displayed exceptional management skills, with a clear focus on profitability. Most recently, as President and Chief Executive Officer of UTC Propulsion & Aerospace Systems, he oversaw the successful integration of the Goodrich Corporation into the company, and the development of some of the largest programs in UTC’s history, including Pratt & Whitney's PurePower Engine. I am convinced that Alain will bring Bombardier to the next level,” said Pierre Beaudoin.
“This is a new beginning, both for myself and for Bombardier”, said Alain Bellemare. “We must improve profitability and realize the true potential of this great organization. I am thrilled to take on these new responsibilities and to join forces with Pierre Beaudoin and the rest of the senior management team. I’m sure that together we will deliver profitable growth.”
Financing Plan
Bombardier is announcing today a plan to position the Corporation with a flexible and strong financial profile. Pursuant to this plan, the Corporation intends to undertake the following:
Issuance of equity for approximately $600 million:the Corporation intends to access the capital markets for approximately $600 million in new equity, depending on market conditions.
New long-term debt capital of up to $1.5 billion:the Corporation intends to access the capital markets for up to $1.5 billion in new debt capital, depending on market conditions.
To complement this financing plan, the Corporation will explore other initiatives such as certain business activities’ potential participation in industry consolidation in order to reduce debt.
In order to realize the capital raising plan announced today, the Corporation has filed a preliminary short form base shelf prospectus with the Canadian securities regulatory authorities which will allow it to offer from time to time over a 25-month period up to approximately $2 billion ($2.5 billion Cdn) of debt, equity or other securities, including convertible securities. The Corporation may also offer the securities on a private placement basis in the U.S. and in other jurisdictions.
In keeping with the Corporation’s objectives, the Board of Directors has concluded that the Corporation’s free cash flow would be more appropriately applied to bolstering the Corporation’s financial structure and investing in its core programs and businesses. Therefore, the Corporation is suspending the declaration of dividends on the Corporation’s Class A shares (multiple voting) and Class B shares (subordinate voting).
Special Meeting of Shareholders
The Corporation is not currently authorized to issue a sufficient number of its Class B shares (subordinate voting) to realize the capital raising plan it announced today, and provide ongoing flexibility to raise additional funds in the future. Accordingly, a special meeting of holders of Class A shares (multiple voting) and Class B shares (subordinate voting) for the purpose of approving an amendment of the articles of the Corporation to increase the number of Class A shares (multiple voting) and Class B shares (subordinate voting) the Corporation is authorized to issue from 1,892,000,000 to 2,742,000,000 has been convened and will take place on or about March 27, 2015. Shareholders of record on February 24, 2015, will be entitled to vote at the special meeting of shareholders. Adoption of the special resolution approving the proposed amendment to the Corporation’s articles requires the approval of 66 2/3% of the holders of Class A shares (multiple voting) and Class B shares (subordinate voting), present or represented by proxy at the special meeting, voting together. Certain members of the Bombardier family currently exercising control or direction over 266,863,185 Class A shares (multiple voting) and 2,700,858 Class B shares (subordinate voting), representing 58.24% of the total votes attached to the Class A shares (multiple voting) and Class B shares (subordinate voting), have agreed to vote in favour of the resolution approving the amendment of the articles of the Corporation.
In the event the special resolution is duly adopted by shareholders, the amendment to the articles of the Corporation is expected to become effective on or about March 30, 2015.
Bombardier Aerospace
Bombardier Aerospace’s revenues amounted to $3.3 billion for the three-month period ended December 31, 2014, compared to $2.9 billion for the same period last fiscal year, an increase of 15.8%. For the year, revenues totalled $10.5 billion, compared to $9.4 billion last fiscal year, an increase of 11.9%.
Negative EBIT totalled $1.3 billion, or (39.2)% of revenues, for the fourth quarter, compared to EBIT of $93 million, or 3.2% for the same period last fiscal year. For the year, negative EBIT totalled $995 million, or (9.5)%, compared to EBIT of $418 million, or 4.5%, last fiscal year. For the fourth quarter, EBIT before special items totalled $54 million, or 1.6% of revenues, compared to $94 million, or 3.3%, for the same period last fiscal year. For the year, EBIT before special items totalled $437 million, or 4.2%, compared to $388 million, or 4.1%, last fiscal year.
Free cash flow amounted to $29 million (including net additions in PP&E and intangible assets of $449million) for the fourth quarter ended December 31, 2014, compared to $87 million (including net additions in PP&E and intangible assets of $591 million) for the same period last fiscal year. For the year, free cash flow usage amounted to $1.1 billion (including net additions in PP&E and intangible assets of $1.9 billion), compared to a usage of $1.2 billion last fiscal year (including net additions in PP&E and intangible assets of $2.2 billion).
Bombardier Aerospace delivered a total of 101 aircraft during the fourth quarter ended December 31, 2014, compared to 83 for the same period last fiscal year, and received 67 net orders, compared to 252, for the same period last fiscal year. The group delivered 290 aircraft for the year, compared to 238 last fiscal year. The net orders reached 282, compared to 388 last fiscal year. Its backlog reached a level of $36.6 billion as at December 31, 2014, compared to $37.3 billion as at December 31, 2013.
The first four CS100 FTVs continue with flight testing activities and, as of February 10, 2015, 967 flight hours were accomplished. On-the-ground testing activities on FTV5 are ongoing and it is expected to be handed over to the flight test team by the end of the first quarter of 2015. The first CS300 aircraft has been handed over to the flight test team and is being readied for its first flight which is expected to take place by the end of the first quarter of 2015. The total CSeries firm orders and other agreements reached 563, with 21 customers in 18 countries, including 243 firm orders.
In 2014, Bombardier delivered 204 business aircraft compared to 180 the previous year and continues to be the business aircraft market leader in terms of units delivered and second in terms of revenues.
Subsequent to the end of the year, Bombardier announced the pause of its Learjet 85 business aircraft program. The pause follows a downward revision of Bombardier's business aircraft market forecast, primarily due to the continued weakness of the light aircraft category since the economic downturn.
In 2015, Bombardier Business Aircraft expects an EBIT margin of approximately 7% an improvement of approximately 1% compared to 2014, cash flows from operating activities between $1.0 billion and $1.4 billion, net additions to PP&E and intangibles of approximately $1.0 billion and approximately 210 aircraft deliveries.(2)
In 2015, Bombardier Commercial Aircraft expects a negative EBIT of approximately $200 million, including the dilutive impact of the initial years of production of the CSeries program, neutral cash flows from operating activities, net additions to PP&E and intangibles of approximately $900 million. The business segment also expects approximately 80 aircraft deliveries.(2)
In 2015, Bombardier Aerostructures and Engineering Services expects an EBIT margin of approximately 4%, neutral cash flows from operating activities, net additions to PP&E and intangibles of approximately $100million and revenues of approximately $1.8 billion, mainly from internal contracts with Business and Commercial aircraft segments.(2)
(2)See Caution regarding non-GAAP measures at the end of this press release.
Bombardier Transportation
Bombardier Transportation’s revenues amounted to $2.6 billion for the three-month period ended December 31, 2014, compared to $2.5 billion for the same period last year, an increase of 13.3% excluding currency impacts. For the year, revenues totalled $9.6 billion, compared to $8.8 billion for the last fiscal year, an increase of 9.7% excluding currency impacts.
For the fourth quarter ended December 31, 2014, EBIT totalled $102 million, or 3.9% of revenues, compared to $92 million, or 3.8%, for the same quarter the previous year. EBIT for the year was $429 million, or 4.5%, compared to $505 million, or 5.8%, for last fiscal year. EBIT before special items for the quarter ended December 31, 2014 totalled $102 million, or 3.9%, compared to $92 million, or 3.8%, for the same period last fiscal year. For the year, EBIT before special items totalled $486 million, or 5.1%, compared to $505 million, or 5.8% last fiscal year.
Free cash flow totalled $506 million for the quarter ended December 31, 2014, compared to $767 million for the same period last fiscal year. For the year, free cash flow amounted to $122 million, compared to $668 million last fiscal year.
New orders reached $1.8 billion (book-to-bill ratio of 0.7) for the fourth quarter, bringing the total orders to $12.6 billion for the year (book-to-bill ratio of 1.3). This translates into an order backlog of $32.5 billion (including a negative currency impact of $2.9 billion) as at December 31, 2014, compared to $32.4 billion as at December 31, 2013.
During the fiscal year, Bombardier Transportation's strong order intake included a contract worth $2.7 billion with the State of Queensland, Australia, for electrical multiple units (EMU) and fleet maintenance services, a $2.1 billion contract with Transport for London, U.K., for AVENTRA trains and fleet maintenance services for the London Crossrail project and a $1.2 billion contract with Transnet Freight Rail, South Africa, for TRAXX locomotives.
We continued to drive The Evolution of Mobility with new products such as São Paulo's new INNOVIA Monorail300 System which started passenger service. This line will carry over half a million passengers every day along the east side of São Paulo. Subsequent to year-end, the ZEFIRO 380 very high speed train received homologation in China. Bombardier-Sifang Transportation, a Chinese entity in which Bombardier holds a 50% participation, is expected to start delivery during the first quarter of 2015.
For 2015, Bombardier Transportation expects a slight improvement in EBIT margin compared to 2014. There should be an improvement in free cash flow compared to 2014 although it is expected to remain below EBIT. Excluding currency impacts, revenues in 2015 are expected to be higher than in 2014, with percentage growth in the low-single digits and the book-to-bill ratio is expected to be in excess of 1.0.(2)
(2)See Caution regarding non-GAAP measures at the end of this press release.
Financial Highlights (PDF)
Selected Financial Information (PDF)
Bombardier Inc. uses its website as a channel of distribution for material company information. Financial and other material information regarding Bombardier Inc. is routinely posted on its website and accessible at bombardier.com. Investors are hereby notified that going forward, information about regular dividends declared and paid by Bombardier will only be made available through its website, unless otherwise required by applicable securities laws.
DIVIDENDS ON COMMON SHARES
Class A and Class B Shares
On February 11, 2015, the Board of Directors of the Corporation decided that, based on the financial results for fiscal year 2014 and until further notice, there would be no dividend payment on the Class A Shares (multiple voting) and the Class B Shares (subordinate voting).
DIVIDENDS ON PREFERRED SHARES
Series 2 Preferred Shares
A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred Shares was paid on November 15, December 15, 2014 and January 15, 2015.
Series 3 Preferred Shares
A quarterly dividend of $0.195875 Cdn per share on Series 3 Preferred Shares is payable on April 30, 2015 to the shareholders of record at the close of business on April 17, 2015.
Series 4 Preferred Shares
A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on April 30, 2015 to the shareholders of record at the close of business on April 17, 2015.
Io l'avevo puntata da diverso tempo, tra latro quella che ho preso io ha isin diverso, ma non avevo mai liquidi per prenderla, a seguito della call del perp db, ho potuto acquistare!
- Stato
Similar threads
Obbligazioni societarie
HIGH YIELD e oltre, verso frontiere inesplorate, vol.3
