) raised $25 billion in a bond offering on Thursday, a blowout result for the planemaker, which it said helped the company avoid taking government aid during the coronavirus-induced travel downturn.
The U.S. central bank has slashed interest rates to zero and rolled out around $2 trillion in lending commitments. While it has not yet snapped up any corporate bonds such as Boeing’s, its openness to doing so has buoyed credit markets. Demand was stoked by high yields relative to Boeing’s other bond issues, Boeing’s earnings report on Wednesday and provisions in the offering that protect investors in case of a credit rating downgrade to junk status.
“We will continue to assess our liquidity position as the health crisis and our dynamic business environment evolve,” the company added.Credit ratings agency Moody’s Investors Service Inc estimated this month that Boeing’s funding needs could top $30 billion in 2020. The company secured about half of this by drawing down on a $13.8 billion credit line in March, Moody’s said.
Given the higher yields on offer, there was around $75 billion’s worth of demand for the new bonds, one source saidTo placate investors over the risk of a potential downgrade to junk status, the bonds contained a provision that raises the coupon paid to bondholders if Boeing loses its investment-grade status.
Boeing said this week it would cut its 160,000-person workforce by about 10%, further reduce 787 Dreamliner production and try to boost liquidity as it prepares for a years-long industry recovery from the pandemic, which drove its second consecutive quarterly loss.
Let Boeing fail. Chinese made planes are mucho safer.
Bilions and bilions ih what big companies get spend use even as a loan from banks goverments but how they gona give money back and when
Which travel downturn was this?
They did it because their executives wanted to keep milking the employees.
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It would have been helpful to know what interest rates/terms were on the Boeing debt.
Their greed killed them.
Nagappar raveendran
Simple , it a bail out in action
Great company but destroyed by the greedy politicians specially on 737Max issue!
Good
Third,government of China is afraid that it will be investigated and known that their officials collude with businessmen to do Illegal wildlife trading and sales, they share loots,so caused and led to COVID-19 or Wuhan Virus Research Institute caused and led to COVID-19
a Chinese soldier who was sent to Wuhan during COVID-19 told he saw many dead persons on the street,it's very horrible ,there are also more persons who died of COVID-19 in other cities in China but government of China also makes fake data
but this is only the number of people in a day,the scene can be seen for several days, the government of China has deleted these photos and prevented Chinese people from seeing the photos
Second,government of China is afraid that investigators of US,other countries,and UN will investigate and know real number of Chinese people who died of COVID-19 ,it's 50 thousands and more,the tens of thousands of people in Wuhan queuing for getting cremains has proved it
👍🏻
and government of China is afraid that it is been investigated and known that the police beat and maimed Li Wenliang and other persons who told the truth about COVID-19
That’s a lot of money