People familiar with the matter said today that Boeing is seeking to issue as many as six batches of bonds. This is also the first time that the company has sold bonds since releasing its loss-making first-quarter earnings report.
Last week, Boeing just released its financial results for the first quarter of 2024, with a loss of 355 million US dollars and cash consumption of 3.9 billion US dollars. Rating agency Moody's downgraded Boeing's credit rating from Baa2 to Baa3, which is only one step away from “junk grade,” and the rating outlook is negative. Moody's predicts that Boeing will face financial difficulties in the next few years.
People familiar with the matter said today that Boeing is seeking to sell multiple batches of bonds with maturities between 3 and 40 years. Among them, the yield on 40-year bonds may be about 2.65 percentage points higher than US Treasury bonds.
Boeing CFO Brian West said on a conference call last week that he plans to protect the company's investment-grade rating. Also, the company still has an unused credit line of $10 billion.
West also added that Boeing is monitoring its receipt of cash and believes Boeing still has “significant market access” if additional liquidity is needed.