Boeing sells $9.8b of bonds to refinance growing debt

Boeing sold $9.825b of bonds Tuesday, looking to refinance an over-levered balance sheet that swelled to keep money flowing in the pandemic. The planemaker is borrowing to repay a portion of the $13.8b loan it drew down at the onset of the coronavirus outbreak, part of a borrowing spree that took its debt balance up to $63.6b by year end. It’s been able to call on bond investors time and time again, riding its way through one of the worst years in its century-long history amid a halt in global travel and the grounding of its best-selling plane. Boeing issued the bonds in three parts, according to a person with knowledge of the matter. The longest portion of the offering, a five-year security that is noncallable for two years, will yield 175 basis points over Treasuries, after initially discussing around 195 basis points, said the person, who asked not to be identified as the details are private. The company had been aiming to refinance about half of the borrowings under its $13.8b delayed draw two-year term loan credit facility, which it raised early last year amid the 737 Max crisis, a second person with knowledge of the matter said before the size of the bond sale was determined. The company drew on the full amount in March amid the start of the pandemic as travel shut down, calling into question whether airlines would keep paying for new planes.<br/>