Aerospace giant Boeing has raised US$850m through a triple-tranche bond offering.
The financing consists of US$250m of floating rates notes due 2017, US$300m of 2.35% senior unsecured notes due 2021 and US$300m of 2.85% senior unsecured notes due…
Aerospace giant Boeing has raised US$850m through a triple-tranche bond offering.
The financing consists of US$250m of floating rates notes due 2017, US$300m of 2.35% senior unsecured notes due 2021 and US$300m of 2.85% senior unsecured notes due 2024.
Boeing said that proceeds would be used for general corporate purposes, including funding Boeing Capital Corporation, its leasing and lending business.
The floating rate notes, which are not redeemable prior to maturity, carry an interest of 12.5bps over Libor. The 2.35% notes priced at 98.725 to yield 2.38%, while the 2.85% notes priced at 98.474 to yield 2.89%.
Citigroup was the left lead on the bond offering with Credit Suisse, Goldman Sachs, BBVA Securities, Credit Agricole and SMBC Nikko Securities joint book runners on the FRNs. Merrill Lynch, Barclays Capital, Mitsubishi UFJ and Wells Fargo were joint books on the 2.35% notes and Deutsche Bank, JP Morgan, BNP Paribas, Mizuho Securities and RBS joint books on the 2.85% notes.
In its recent third quarter results, Boeing reported total consolidated debt of US$8.9bn and free cash flow of US$317m.
The company’s Defense, Space & Security business generated quarterly revenues of US$7.9bn, down 2% year-on-year. However, quarterly earnings were up 27% due to a doubling in profits from its military aircraft operations.
Backlog at Defense, Space & Security was US$60bn, 37% of which represents orders from international customers.
