Boeing has placed four bond issues with total worth of 1.4 billion USD. The company plans to use the raised funds for repaying debt, acquire assets and buyback shares. Boeing offered to investors in 5-, 10-, 20-, and 30-year maturities, with longest of which were placed at a yield of 83 basis points (bp) higher than the similar US Treasuries.
Boeing aims to encourage its shareholders. In December, the company announced an increase in quarterly dividends by 20% – to 1.74 USD per share, and also allocated 18 billion USD to buy back shares.
Fitch assigned a credit rating of “A” to Boeing bonds, noting that the company can use proceeds from placement to refinance debt obligations with repayment in the current year.
Until the end of this year, Boeing will have to repay short-term and long-term bonds with total worth of 1.3 billion USD.
The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, and satellites worldwide. The company also provides leasing and product support services. Boeing is among the largest global aircraft manufacturers; it is the second-largest defense contractor in the world based on 2015 revenue, and is the largest exporter in the United States by dollar value. Boeing stock is a component of the Dow Jones Industrial Average.