The American aviation manufacturer Boeing, heavily affected by the coronavirus pandemic, announced Thursday that it does not plan to seek government support at this time after receiving strong interest from the public bond market in a $ 25 billion offer.
“We do not plan to seek additional financing through the capital markets or the options of the United States government at this time.According to a statement released Thursday night.
Boeing, which has been impacted by the closure of airlines around the world due to the coronavirus, said demand for the bond offering had been “robust.”
The group noted that it expects the bond offering to be completed on May 4.
This offer includes seven series of bonds maturing between 2023 and 2060. A securities presentation Thursday did not indicate interest rates for the notes.
The announcement comes a day after Boeing reported a loss of $ 641 million in the first quarter. and said he was cutting 10% of his workforce in response to the crisis in the airline industry due to confinement measures by COVID-19.
The S&P agency It lowered Boeing’s credit rating on Wednesday night after the results, which also showed the lingering effects that the best-selling 737 MAX aircraft has been on the ground for a long time after two fatal accidents.
However, Boeing’s credit rating remains investment grade on the S&P list.
The CARES Act, a $ 2 trillion official US aid package approved in March, included $ 17 billion in aid to Boeing. It is part of a series of unprecedented measures by Washington to support the United States economy at a time when unemployment is on the rise in the wake of the coronavirus outbreak.
Company executives said Wednesday they were exploring private markets in addition to financing the CARES Law. The United States Treasury had ordered companies to say on Friday if they wanted public funds.
Boeing Chief Executive Dave Calhoun noted this week that the passage of the CARES Act had improved conditions in the private credit markets, a point reiterated by the company Thursday night.
“Strong supply demand reflects strong support for the long-term strength of Boeing and the aviation industry“Said the aeronautical group.
“It is also in part the result of the trust in the market created by the CARES Act and the federal support programs that have been implemented, an inheritance from the government, Congress and the Federal Reserve,” he said.
With AFP information
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