The Boeing CompanyBoeing is a co-owner of ULA; the bond deal may provide financial flexibility but impact on Boeing is indirect.
United Launch Alliance, the rocket company owned by Boeing and Lockheed Martin, is seeking about $1.5 billion through a private bond transaction, expanding the planned financing to roughly three times its original size. The offering consists of four debt tranches with maturities ranging from three years to 10 years, after ULA had initially targeted $500 million. The financing comes as ULA continues providing launch services to the U.S. military and commercial customers including Amazon, and the debt proceeds could provide additional financial flexibility for the launch business. ULA also recently appointed Mark Peller as its president and chief executive officer, a veteran aerospace executive who assumed the position immediately. The larger-than-planned bond transaction highlights the financing needs of the space and defense sector as companies invest in launch capabilities and compete for government and commercial contracts.
The Boeing CompanyBoeing is a co-owner of ULA; the bond deal may provide financial flexibility but impact on Boeing is indirect.
Lockheed Martin CorporationLockheed Martin is a co-owner of ULA; the bond deal may provide financial flexibility but impact on Lockheed is indirect.
Amazon.com IncULA is seeking $1.5 billion in private bond financing, expanding its planned debt to three times the original size, providing financial flexibility.