“We’re pleased with the response to our bond offering today, which is one of several steps we’re taking to keep liquidity flowing through our business and the 17,000 companies in our industry’s supply chain,” Boeing said in a statement. The company said it also doesn’t believe it will need to raise more money in the capital markets after the bond issues, which carry maturities ranging from three to 40 years.
On Wednesday, Calhoun said credit markets have improved since the company’s original request for federal help.
“The $60 billion number, of course, was put together early in this process. And credit markets were as tight as they could be, and we were trying to assess the fragility of mostly the supply chain, frankly,” Calhoun said. He and CFO Greg Smith stressed that the $60 billion figure was Boeing’s estimate for what both itself and its suppliers would need.
Boeing is very concerned not just about its own financial health, but also the health of its suppliers. If suppliers are forced out of business by financial problems caused by the 737 Max and coronavirus crises, that would also hurt Boeing.
“Without the supply chain there will be nothing for us to assemble, so it’s as simple at that,” Calhoun said on Monday during the company’s annual meeting.
Boeing is getting some help from the federal government, even if it doesn’t need a government loan. As a defense contractor, it has been receiving expedited payments, and the Air Force has settled a dispute with Boeing that had held up payments for some refueling tankers. Boeing said Wednesday that it has been able to defer some tax payments under terms of the act.
“Knowing that the US airline industry has critical financial support through the pandemic allows us to plan our production and services system for the medium and long-term impact on air travel,” Calhoun said Wednesday.