Boeing raises $25 billion in bond offering, rules out federal aid
Boeing posted a 641 million dollar loss in the first quarter and said it is planning to cut its workforce and aircraft production in a world aviation market virtually frozen by the coronavirus pandemic.
New DelhiAerospace major Boeing has raised 25 billion dollars in a bond offering and said it will not seek government aid in the fallout from coronavirus pandemic.
It is the company’s biggest debt sale ever in a bleak market for new planes as air travel demand plunges because of the COVID-19 and subsequent air travel restrictions around the world.
The bond offering includes debt instruments with an aggregate principal amount of 25 billion dollars across seven tranches with maturities ranging from three to 40 years.
“As a result of the response and pending the closure of this transaction expected on May 4, we do not plan to seek additional funding through the capital markets or the US government options at this time,” Boeing said in a statement late on Thursday (local time).
“We are pleased with the response to our bond offering today which is one of several steps we are taking to keep liquidity flowing through our business and the 17,000 companies in our industry’s supply chain,” it added.
The robust demand for the offering reflects strong support for the long-term strength of Boeing and the aviation industry, Boeing said.
It is also in part a result of the confidence in the market created by the CARES Act and federal support programmes that have been put in place — a testament to the Administration, Congress and the Federal Reserve.
“We will continue to assess our liquidity position as the health crisis and our dynamic business environment evolve,” it said.
Last month, Boeing sought 60 billion dollars in federal aid for itself and its supply chain, which includes General Electric and Spirit Aerosystems.
Earlier this week, Boeing posted a 641 million dollar loss in the first quarter and said it is planning to cut its workforce and aircraft production in a world aviation market virtually frozen by the coronavirus pandemic.
The pandemic is a new crisis for the company that was already struggling from the fallout from two deadly crashes of its best-selling plane: the 737 Max. (ANI)