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Boeing to issue $5.5 billion of debt for Embraer purchase

Boeing intends to raise $5.5 billion through previously announced notes to help fund its planned purchase of majority ownership of Embraer's commercial aircraft division.

The Chicago-based airframer filed a regulatory document on 29 July announcing its intention to issue the bonds, but that document did not disclose the amount.

A new filing on 30 July shows Boeing plans to issue $5.5 billion of debt.

"The company intends to use approximately $4 billion of the net proceeds from this offering to fund its previously announced joint venture with Embraer and the remaining net proceeds for general corporate purposes," Boeing says.

Boeing's deal with Embraer calls for the US company to acquire 80% of the Brazilian airframer's commercial aircraft division for $4.2 billion.

The companies expect the deal will close before year-end.

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