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Filed Pursuant to
Rule 424(b)(3)
File No. 33-31419
PRICING SUPPLEMENT DATED
February 28, 1994 TO PROSPECTUS
DATED November 18, 1993
McDONNELL DOUGLAS FINANCE CORPORATION
Series IX Medium-Term Notes
Interest payable Semi-annually on March 15th and September 15th
and at maturity
Except as set forth herein, the Series IX Medium-Term Notes offered
hereby (the "Notes") have such terms as are described in the accompanying
Prospectus dated November 18, 1993.
Aggregate Principal Amount: $ 15,000,000
Original Issue Date
(Settlement Date): March 15, 1994
Stated Maturity Date: February 25, 1997
Issue Price: 100.00% of Principal Amount
Interest Rate: 5.61% Per Annum
Interest Payment Dates: March 15 and September 15 commencing
September 15, 1994
Type of Notes Issued: [ X] Senior Notes
[ ] Subordinated Notes
Optional Redemption: [ ] Yes
[ X] No
Form of Notes Issued: [ X] Book-Entry Notes
[ ] Certificated Notes
CUSIP Number: 58017DCP3
AGENT
The Notes being offered hereby are being offered through PaineWebber
Incorporated, as Agent. Net proceeds payable by McDonnell Douglas Finance
Corporation (the "Company") will be 99.835% of the aggregate principal amount
of the Notes, or $14,975,250, before deduction of expenses payable by the
Company. In connection with the sale of the Notes, PaineWebber Incorporated
will receive a commission from the Company in the amount of .165% or $24,750.
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OTHER INFORMATION
The information in the Prospectus set forth under the caption "RISK
FACTORS-Relationship with MDC" is supplemented by the following:
MDC has accepted, with clarifications, a proposal from the Department of
Defense on an overall business settlement of a variety of issues
concerning the C-17 program. In connection with the settlement, MDC
recorded a charge to pre-tax earnings of approximately $450 million in
the fourth quarter of 1993. The settlement is not expected to result in
a significant adverse cash impact to MDC. MDC and the U.S. Air Force
will be developing plans, contractual modifications and agreements to
implement the business arrangement, which is subject to congressional
authorization and appropriations.
The United States Court of Federal Claims has issued an order deferring
rulings on the merits of the A-12 termination case until July 21, 1994.
The court's order is based upon an undertaking by the United States that
it would not seek to terminate the A-12 deferment agreement between MDC,
General Dynamics Corporation and the Navy in the interim. MDC firmly
believes it is entitled to continuation of the deferment agreement in
accordance with its terms.
MDC believes it is likely that the weakness of the commercial aircraft
market will continue during 1994.
SELECTED CONSOLIDATED FINANCIAL DATA
The following amends and supplements the information set forth under the
caption "SELECTED CONSOLIDATED FINANCIAL DATA" on page 9 of the Prospectus:
The following table presents selected consolidated financial information
of the Company as of December 31, 1992 and 1993 and for the years ended
December 31, 1992 and 1993. The information in the table should be read in
conjunction with, and is qualified in its entirety by reference to, the
Company's consolidated financial statements included in the Company's Current
Report on Form 8-K dated February 3, 1994 and the Company's Annual Report on
Form 10-K for the year ended December 31, 1992. Results for the year ended
December 31, 1993 are unaudited, but include all adjustments, consisting of
normal accruals, that the Company considers necessary for a fair presentation
of such results. See "Selected Consolidated Financial Data" in the
accompanying Prospectus.
(DOLLARS IN MILLIONS) Years Ended December 31,
1993 1992
Selected earnings data: (Unaudited)
Operating income . . . . . . . . . . $ 198.5 $ 254.7
Interest expense . . . . . . . . . . 116.4 145.9
Net income . . . . . . . . . . . . . 16.8 27.7
Ratio of income from continuing
operations to fixed charges. . . . . . 1.34x 1.32x
Selected balance sheet data:
Total assets . . . . . . . . . . . . $ 2,076.8 $ 1,999.0
Total debt . . . . . . . . . . . . 1,385.1 1,330.4
Shareholder's equity . . . . . . . . 269.4 256.4
Cash dividends paid . . . . . . . . . 3.5 105.8
