8-KOther EventsExhibits & Filings

BOEING CO 8-K Report, Corporate Update (Jul 28, 2009)

Filed July 28, 2009For Securities:BABA-PA

Summary

This 8-K filing from The Boeing Company (BA), dated July 28, 2009, details the company's issuance of $1.95 billion in aggregate principal amount of senior notes across three tranches: $750 million in 3.500% Senior Notes due 2015, $750 million in 4.875% Senior Notes due 2020, and $450 million in 5.875% Senior Notes due 2040. These unsecured notes rank equally with other unsecured and unsubordinated debt of the company. This substantial debt offering indicates Boeing's strategy to secure significant capital, likely for ongoing operations, future investments, or to manage its existing debt structure. Investors should note the specific interest rates and maturity dates for each tranche, as these will impact the company's future interest expenses and cash flow obligations. The filing also references a Purchase Agreement with several financial institutions acting as representatives for the purchasers and notes the availability of detailed offering information in related prospectus supplements filed with the SEC.

Key Highlights

  • 1The Boeing Company issued a total of $1.95 billion in senior notes.
  • 2The issuance comprises three tranches: $750 million (3.500% due 2015), $750 million (4.875% due 2020), and $450 million (5.875% due 2040).
  • 3The notes are unsecured and rank pari passu with other unsecured and unsubordinated debt.
  • 4Interest payments will be made semi-annually on February 15 and August 15, with the first payment on February 15, 2010.
  • 5Boeing has the right to redeem the notes in whole or in part prior to maturity.
  • 6The issuance was facilitated by a Purchase Agreement with Banc of America Securities LLC, Deutsche Bank Securities Inc., and Morgan Stanley & Co. Incorporated.
  • 7Detailed terms and conditions of the offering are available in the Final Prospectus Supplement filed with the SEC.

Frequently Asked Questions

The Boeing Company issued a total of $1.95 billion in aggregate principal amount of senior notes.

The notes have staggered maturities and interest rates: $750 million in 3.500% Senior Notes due February 15, 2015; $750 million in 4.875% Senior Notes due February 15, 2020; and $450 million in 5.875% Senior Notes due February 15, 2040.

These notes will increase Boeing's outstanding debt, leading to higher semi-annual interest expenses (totaling approximately $56.3 million annually based on stated rates) and principal repayment obligations at maturity for each tranche. The unsecured nature of the notes means they rank equally with existing unsecured debt.

While the filing does not explicitly state the purpose, substantial debt issuances like this are typically used to fund general corporate purposes, capital expenditures, acquisitions, refinance existing debt, or bolster liquidity. Investors should look for further information in Boeing's subsequent financial reports or investor communications for a detailed explanation.