Investing.com — United Launch Alliance has completed a $1.5 billion private bond offering, three times larger than the company’s initial target of $500 million, according to a Bloomberg report Tuesday.
The rocket joint venture, owned by Boeing Co. and Lockheed Martin Corp., sold four portions of debt with maturity dates ranging from three to 10 years, the report said.
The company provides rocket launch services for the US military and commercial customers including Amazon.com Inc.
The deal reflects a broader trend in the high-grade private placement debt market, where nearly half of all new issues this year have featured maturities of five years or less. This compares to just 11% of deals five years ago. Companies are opting for shorter-term debt as longer-term Treasury rates have reached their highest levels in decades.
Boeing and Lockheed Martin established ULA two decades ago. The joint venture is among a small group of US companies authorized to launch the Defense Department’s most sensitive satellites.
On Monday, ULA named company veteran Mark Peller as its new president and chief executive officer. Peller previously served as chief operating officer, where he managed operations for the Atlas and Vulcan launch vehicle programs.
Peller joined ULA when it was formed in 2006 and led the Vulcan rocket development from its start through its successful entry into service and certification for US government missions.
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