US aerospace giant Boeing is out with a US$500m dual tranche senior unsecured bond offering. The company is issuing US$350m of 0.950% senior notes due 2018 and US$150m of floating rate senior notes due 2014.
The fixed rate notes priced at 98.899% to…
US aerospace giant Boeing is out with a US$500m dual tranche senior unsecured bond offering. The company is issuing US$350m of 0.950% senior notes due 2018 and US$150m of floating rate senior notes due 2014.
The fixed rate notes priced at 98.899% to yield 1.176%, while the the FRNs priced at par and will bear interest at three-month LIBOR plus 1 basis point. The floating rate notes are not redeemable prior to maturity.
Morgan Stanley (the left lead), Citigroup, Goldman Sachs and JP Morgan are joint book-running managers on the fixed rate notes, while MS, Barclays Capital and Deutsche Bank are the book-running managers on the FRNs. There were a total of twenty-two banks acting as co-managers on the 0.950% senior note issuance.
Boeing stated that net proceeds would be used for general corporate purposes, including funding Boeing Capital Corporation, its asset-based leasing and lending services subsidiary.
In its recently reported first quarter 2013 results, Boeing announced a slight fall in both quarterly revenues, down 3% year-on-year to US$18.9bn, and operating earnings, down 2% to US$1.528bn.
However, the company’s space systems business bucked this trend with revenues up 5% year-on-year to US$1.96bn and operating earnings increasing by a substantial 43% to US$156m.
Boeing said that this increase was primarily driven by higher volume in satellite programs as well as NASA funding for the Space Launch System program.
The group estimates that its network and space systems business will generate US$7.3bn of revenues with an operating margin of 7.5% in 2013.
