Boeing to Sell $5.5 Billion of Bonds for Brazil Embraer JV
A 40-year security, will yield 1.4 percentage points more than Treasuries
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- Notes to come in six tranches, including 40-year debt
- Bonds issued as Boeing faces fallout from grounding of 737 Max
The airplane manufacturer is selling senior unsecured bonds in six parts, according to a filing Monday. The longest portion of the offering, a 40-year security, will yield 1.4 percentage points more than Treasuries, after initially discussing around 1.55 percentage points, according to a person with knowledge of the matter, who asked not to be identified as the details are private.
The bond sale comes as Boeing faces the fallout of a global grounding of its 737 Max plane. Boeing said last week it will consider slowing or even temporarily halting production of the 737 Max, the company's most important jetliner, if a global flying ban drags on longer than anticipated. The company this month also revealed a $4.9 billion after-tax charge to compensate airlines and lessors.
The bond offering should...
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