The Boeing Co. is an American multinational company that designs as well as manufactures and sells airplanes, rotorcraft, rockets, satellites etc through the worldwide. On Thursday the Boeing Company told that it doesn’t have any plan to seek federal aid after raising a whopping $25B in a bond offering, the company’s greatest debt sale ever, as it faces what it expects to be a multiyear slump in air travel due to the corona virus pandemic situation. For which the Business shutdowns around the world to hold back this vital situation have vanished the demand for air travel.
Actually according to Definitive data, its raise first reported by Reuters by this week is the sixth largest investment grade bond offering of all time. The Federal Reserve’s intervention has boosted prospects for troubled borrowers as like Boeing.
As a result of this it told in a statement the already pending the closure of this transaction which expected Monday i.e. on May 4, we don’t any plan to seek additional funding through the capital markets or the U.S. govt. options at this time. Boeing last month sold about $60 billion in federal aid for its supply chain which includes the General Electric and Spirit Aero system.
About $2.2 trillion in federal corona virus relief that Congress approved last month set $17 billion in federal loans for the companies considered of national security interest that Boeing fits. The CEO of Boeing Dave Calhoun has balked at the possibility of providing the govt. an equity stake in return for the federal aid but this week told all options were on the table. When it is asked whether the company would apply for govt. loans Calhoun told CNBC this week that credit markets unwind a fair amount recently after a no. of stimulus programs.
CFO Greg Smith posted about the bond offering thanked the Trump administration for the recent stimulus measures and called investors response to Boeing’s debt sale that evidence to the confidence the market has in our business or our people and our future.