Bombardier shares rise after it secures loan of up to $1 billion, improves cash usage

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Bombardier shares rise after it secures loan of up to $1 billion, improves cash usage
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Signals it will have enough liquidity to weather pandemic

The loan will provide additional liquidity for working capital as Bombardier realigns its production rates with current market conditions, the company said.Article content continued

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. In a note to clients, Desjardins analyst Benoit Porier said he was “pleased with the better-than-expected” cash usage and facility.

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