Boeing's pride and arrogance gets in the way again. They will sell bonds at almost junk status.
https://www.bloomberg.com/news/articles/2020-04-30/boeing-kicks-off-mega-bond-sale-to-shore-up-funding-in-crisis
7 replies (most recent on top)
Us "lazy union folks" generally get it done around Boeing. I've had ONE manager who didn't have their head up their backside during my entire career....and they got rid of him for being too smart and rowing against the current of management stupidity.
Well this will last them a while $25B!!!
Had orders for $70B
I think Boeing will get by and we get rid of some of those lazy union folks, win-win
https://finance.yahoo.com/news/boeing-kicks-off-mega-bond-124827852.html
Selling bonds (even at one notch above junk status) is the right way to raise money. All the companies have the ability to raise money this way, there should be no taxpayer bailouts.
Those are junk bonds. Their credit rating is junk.
Boeing will survive only with a government bailout, the question for them is when they capitulate and take it. Issuing junk bonds now just means the taxpayer will be on the hook for that debt in the future when they finally take the bailout.
@tfi+14J7fnH0 you may have missed part of my point.
If they took the bailout, Boeing would be severely limited in what the money is used for and how many people they could layoff.
Since they are raising thier own capital through a Bond Issue, they can pretty much do whatever the hell they want.
Now, you do make a good point about the layoffs. The virus gave them the PERFECT excuse to cut.
Bingo
Maybe taking bailout means that company shall keep employees employed for a number of years. And maybe company wanted to take this chance to do massive layoffs that were planned before this virus happened (and now they can point fingers at the virus).