Boeing raises $25 bln in blowout debt sale
Planemaker Boeing raised $25 billion on Thursday (April 30) in a blowout sale of its debt.
According to Refinitiv data, its the biggest investor-grade bond offering this year, and the sixth-largest of all time.
The company says that helped it avoid taking government aid, financial assistance that President Donald Trump has repeatedly vowed to give the company.
According to people familiar with the matter, Boeing was originally aiming to raise $10 to $15 billion, but strong demand from investors pushed it to crank up the size of the deal.
The company now says it won't seek more money through the markets or U.S. government options.
Boeing has had two straight quarters of losses.
Before business shutdowns around the world dried up demand for air travel, it was still dealing with bringing its 737 MAX jet back into service.
Investors were eager to buy Boeing's debt after its earnings report Wednesday (April 29), which wasn't good - but in which the company did announce cost-cutting measures.
The bond deal also protects investors in case credit agencies downgrade Boeing to junk status.
Among those agencies is Moody's, who this month estimated Boeing may need more than $30 billion in funds this year.
As for the 737 MAX jet, people briefing on the matter told Reuters the planes are expected to remain grounded at least until August due to software issues.
