Bombardier Inc said on Wednesday it secured a loan of up to US$1 billion and its second-quarter cash usage was expected to be about US$500 million less than estimates, signaling that it would have enough liquidity to weather the COVID-19 pandemic.
The Canadian jet maker has already pulled its 2020 forecast and announced job cuts as the health crisis pummels demand for its high-margin private jets.The company said it secured a commitment from investment funds and accounts managed by HPS Investment Partners LLC to provide the three-year senior secured term loan.
In the second quarter, Bombardier expects pro-forma liquidity of about US$3.4 billion, and about US$1 billion of free cash flow usage. The company will report its second-quarter results on Aug. 6.