Bombardier turnaround deepens with new US$500M debt reduction move

Workers and media take pictures as the new Bombardier Global 8000 high-speed business jet is presented at an event celebrating its entry-into-service at the company's aircraft assembly centre in Mississauga, Ont., on Monday, Dec. 8, 2025. THE CANADIAN PRESS/Sammy Kogan

MONTREAL — Bombardier says it will repay US$500 million in senior notes next year ahead of their 2028 due date as it works to reduce its outstanding debt.

The company says with the repayment, which is expected to close by Feb. 17, it will have reduced its long-term debt by US$5.5 billion since December 2020, generating annualized interest cost savings of more than US$409 million.

Bombardier chief financial officer Bart Demosky says the company’s proactive approach to liquidity and debt management has been a cornerstone of its turnaround.

Demosky says the company is on track to meet its long-term deleveraging targets.

Bombardier is targeting an adjusted net debt to adjusted EBITDA ratio of two to 2.5.

The company announced a deal last week to sell six Global 6500 jets to the federal government to replace the Royal Canadian Air Force’s Challenger aircraft, which are used to shuttle around VIPs like the prime minister and Governor General.

This report by The Canadian Press was first published Dec. 17, 2025.