Boeing raises $25 billion in a bond sale

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May 01, 2020
Boeing
Boeing, Boeing Test & Evaluation, 777X, 777-9, WH001, Boeing Commercial Airplanes, First Flight, Chase Photos, 002-07, IAW

Boeing has scrapped plans to seek US federal aid after it was able to raise a staggering $US25 billion in a bond offering.

The offering was three times oversubscribed.

In a statement, the company said that “as a result of the response, and pending the closure of this transaction expected Monday, May 4, we do not plan to seek additional funding through the capital markets or the U.S. government options at this time.”

Boeing has been vocal and successful in arguing for federal aid for the aviation industry and its supply lines with the US government committing US$60 billion as well as US$50 billion for the airlines.

However, Boeing’s chief Dave Calhoun has been cautious in an equity stake by the US government for aid.

Boeing’s CFO Greg Smith, said the bond sale was “a testament to the confidence the market has in our business, our people, and our future.”

There seven bond sales with maturities from 3 to 40 years.

And the good news continued to flow for the aerospace giant with its second 777X taking to their air yesterday.

Designated WH002, the 777X is the second of four in a dedicated flight test fleet and will test handling characteristics and other aspects of aircraft performance.

An array of equipment, sensors and monitoring devices throughout the cabin allows the onboard team to document and evaluate the aircraft’s response to test conditions in real-time.

The 777X test plan lays out a comprehensive series of tests and conditions on the ground and in the air to demonstrate the safety and reliability of the design.

To date, pilots have flown the first 777X nearly 100 hours at a variety of flap settings, speeds, altitudes and system settings as part of the initial evaluation of the flight envelope.

Boeing says with initial airworthiness now demonstrated, the team can safely add personnel to monitor testing onboard instead of relying solely on a ground-based telemetry station, unlocking testing at greater distances.

The 777X is due to be delivered to airlines such as Emirates, Qatar Airways and Lufthansa next year.

It uses 40 per cent less fuel per passengers than the giant A380.