...February 2, 2021 WASHINGTON D.C. (S&P Global Ratings) Feb. 2, 2021--S&P Global Ratings today assigned its '###-' rating to Chicago-based aircraft manufacturer and defense contractor Boeing Co.'s proposed senior notes due 2023, 2024, and 2026 and floating rate senior notes due 2024. The company plans to use the proceeds to pay down a portion of its $13.8 billion term loan that matures in February 2022. In 2022, Boeing will be able to call the notes due 2023 and 2024 at par. Similarly, in 2023, it can call the notes due in 2026 at par. The interest rate on the notes will increase if we or another rating agency downgrade the company. We believe this transaction is credit neutral as it allows the company to maintain a large liquidity cushion while it is dealing with the effects of the pandemic on aircraft demand but still preserves the ability to easily pay down debt in 2022 when cash flow should turn positive. However, the interest cost of the new notes is likely to be somewhat higher than...
