Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

BAE Systems Plans $4 Billion Bond Sale for Ball Aerospace Acquisition

Daniel Kim Views  

British defense company BAE Systems is preparing to sell corporate bonds to finance the acquisition of Ball Aerospace.

According to an insider, as of the 18th (local time), BAE Systems is recruiting investors to sell corporate bonds that could exceed $4 billion to refinance the bridge loan used to acquire Ball Aerospace.

The final size of the bond offering will be decided on the day of the sale.

In August, the company agreed to acquire Ball Aerospace, a frontier in space expected to become increasingly important in warfare, for $5.6 billion.

This is Ball Aerospace’s largest acquisition in its history. This bond sale is the most recent transaction among many arranged for merger and acquisition financing after BAE Systems had its worst year in a decade for raising acquisition funds.

BAE Systems and Bank of America, who have adjusted investor demands following the transaction news, did not respond to requests for confirmation.

While lenders are entering the corporate bond market at an unprecedented pace, suppressing fundraising, spreads are tightening to lower borrowing costs.

Companies like Bristol Myers Squibb, Cisco Systems, and AbbVie have attracted orders for large-scale public offerings related to mergers and acquisitions.

With the interest rate decision of the Federal Reserve System coming up on Wednesday, this week’s sales momentum is extending, which could hamper the flow of new bond issuance.

On Monday, eight lenders hit the bond market, with the issuance of $25 billion to $30 billion expected this week.

Meanwhile, Moody’s upgraded BAE Systems’ credit rating, anticipating strengthening the rating following strong growth forecasts and large-scale debt financing acquisitions at the end of February

Daniel Kim
content@viewusglobal.com

Comments0

300

Comments0

[BUSINESS] Latest Stories

  • Honda's NSX Returns: A 1,000-Horsepower Electric Rival to Lexus LFR
  • Honda’s S7 Electric SUV: A Major Player in the Race for EV Dominance
  • Lamborghini's First EV: A 2,000-Horsepower Beast Built for Speed and Emotion
  • Ford Revives Classic Design with the 2025 Bronco Heritage Edition
  • ID.EVERY1: Volkswagen's $21K Electric Vehicle Aims to Make Green Driving Accessible
  • Toyota’s bZ3X SUV Surges with 10,000 Pre-Orders: A New Era in EVs

You May Also Like

  • 1
    Dining Out While Dieting: 10 Healthy Restaurant Meals You Can Enjoy

    LIFESTYLE 

  • 2
    How Real People Shaped Disney’s Most Beloved Animated Characters

    ENTERTAINMENT 

  • 3
    Why Olive Oil is the Ultimate Wellness Food You Shouldn't Overlook

    LIFESTYLE 

  • 4
    Is Barefoot Walking the Secret to Better Circulation and Less Stress?

    LIFESTYLE 

  • 5
    Actress Swears by Morning Saltwater—Doctors Say Don’t Overdo It

    LIFESTYLE 

Popular Now

  • 1
    Sweet and Salty? Tastes Great, But Here's What It's Doing to Your Body

    LIFESTYLE&nbsp

  • 2
    Yogurt: Diet Savior or Sneaky Saboteur? Here's What You Should Know

    LIFESTYLE&nbsp

  • 3
    Blackberries vs. Raspberries: Which Berry Is the Low-Calorie King?

    LIFESTYLE&nbsp

  • 4
    Why Some People Gain Weight on Salads—and Others Don’t

    LIFESTYLE&nbsp

  • 5
    This Vitamin Could Help You Fight Fatigue, Infections, and More

    LIFESTYLE&nbsp

Must-Reads

  • 1
    Dining Out While Dieting: 10 Healthy Restaurant Meals You Can Enjoy

    LIFESTYLE 

  • 2
    How Real People Shaped Disney’s Most Beloved Animated Characters

    ENTERTAINMENT 

  • 3
    Why Olive Oil is the Ultimate Wellness Food You Shouldn't Overlook

    LIFESTYLE 

  • 4
    Is Barefoot Walking the Secret to Better Circulation and Less Stress?

    LIFESTYLE 

  • 5
    Actress Swears by Morning Saltwater—Doctors Say Don’t Overdo It

    LIFESTYLE 

Popular Now

  • 1
    Sweet and Salty? Tastes Great, But Here's What It's Doing to Your Body

    LIFESTYLE 

  • 2
    Yogurt: Diet Savior or Sneaky Saboteur? Here's What You Should Know

    LIFESTYLE 

  • 3
    Blackberries vs. Raspberries: Which Berry Is the Low-Calorie King?

    LIFESTYLE 

  • 4
    Why Some People Gain Weight on Salads—and Others Don’t

    LIFESTYLE 

  • 5
    This Vitamin Could Help You Fight Fatigue, Infections, and More

    LIFESTYLE