Summary
Boeing Co. (BA) filed an 8-K on February 3, 2021, to report the issuance of nearly $9.83 billion in senior notes. This significant debt offering comprises three tranches with varying maturities and interest rates: $1.325 billion in notes due 2023 at 1.167% interest, $3 billion due 2024 at 1.433% interest, and $5.5 billion due 2026 at 2.196% interest. These unsecured notes rank equally with other existing unsecured debt and were issued under an existing indenture, supplemented by an officers' certificate. The proceeds from this offering are intended to strengthen Boeing's financial position. Investors should note that the interest rates are subject to adjustment based on credit ratings.
Key Highlights
- 1Boeing issued approximately $9.825 billion in aggregate principal amount of senior notes.
- 2The offering consists of three tranches: $1.325 billion (2023 maturity, 1.167% interest), $3 billion (2024 maturity, 1.433% interest), and $5.5 billion (2026 maturity, 2.196% interest).
- 3Interest payments are semi-annual, commencing August 4, 2021.
- 4The interest rates on the notes are subject to adjustment based on specified credit rating events.
- 5The notes are unsecured and rank pari passu with other unsecured and unsubordinated debt.
- 6The issuance was made under an existing indenture dated February 1, 2003, and governed by an Officers' Certificate dated February 4, 2021.
- 7Boeing has the option to redeem these notes in whole or in part prior to maturity.