Boeing sells almost US$10 billion in bonds


Use this oneTroubled plane maker Boeing sold US$9.825 billion of bonds Tuesday (2 February) as it looks to refinance debt and repay part of the US$13.8 billion loan it drew down at the onset of the COVID-19 outbreak, according to media reports. Boeing reportedly had debt amounting to US$63.6 billion at the end of the year.

Boeing issued the bonds in three parts, according to a report from Bloomberg. The longest portion of the offering, a five-year security that is noncallable for two years, will yield 175 basis points over Treasuries, after initially discussing around 195 basis points, the report said. The company had been aiming to refinance about half of the borrowings under its US$13.8 billion delayed draw two-year term loan credit facility, which it raised early last year amid the 737 MAX crisis.

The new debt offers additional protection to investors through what’s known as coupon steps, in which the interest rate increases by 25 basis points for each downgrade below investment grade, according to Bloomberg. Boeing is rated one notch above junk at S&P Global Ratings and Fitch Ratings, while Moody’s Investors Service has it one level higher.

Use this one

For Editorial Inquiries Contact:
Editor Matt Driskill at
For Advertising Inquiries Contact:
Head of Sales Kay Rolland at


Please enter your comment!
Please enter your name here