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Filed Pursuant to
Rule 424(b)(3)
File No. 33-31419
PRICING SUPPLEMENT DATED
May 26, 1994 TO PROSPECTUS
DATED May 20, 1994
McDONNELL DOUGLAS FINANCE CORPORATION
Series IX Medium-Term Notes
Due Nine Months or More From Date of Issue
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 May 20, 1994 (the "Prospectus").
Aggregate Principal Amount: $30,000,000
Original Issue Date
(Settlement Date): May 27, 1994
Stated Maturity Date: May 28, 1998
Issue Price: 100.00% of Principal Amount
Base Rate: LIBOR
Spread: Plus 62.5 basis points
Initial Interest Rate: Base Rate plus Spread, as determined on May 25,
1994
Index Maturity: Three months
Interest Payment Dates: 1994: August 30 and November 28
1995: February 27, May 30, August 29 and
November 27
1996: February 27, May 28, August 27 and
November 27
1997: February 27, May 27, August 27 and
November 28
1998: February 27 and on the Stated Maturity
Date
Commencing: August 30, 1994
Interest Reset Period: Quarterly
Calculation Agent: Bankers Trust Company
Interest Reset Dates: 1994: August 30 and November 28
1995: February 27, May 30, August 29 and
November 27
1996: February 27, May 28, August 27 and
November 27
1997: February 27, May 27, August 27 and
November 28
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1998: February 27
Interest Determination
Dates: The second London Business Day preceeding each
Interest Reset Date
Type of Notes Issued: [ X ] Senior Notes [ ] Fixed Rate Notes
[ ] Subordinated Notes [ X ] Floating Rate Notes
Optional Redemption: [ ] Yes
[ X ] No
Form of Notes Issued: [ X ] Book-Entry Notes
[ ] Certificated Notes
CUSIP Number: 58017DCT5
PURCHASE AS PRINCIPAL
This Pricing Supplement relates to $30,000,000 aggregate principal of
Notes that are being purchased, and may be offered, as principal, by Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill
Lynch") from time to time to one or more investors at varying prices related
to prevailing market conditions at the time or times of resale as determined
by Merrill Lynch. Net proceeds payable by Merrill Lynch to McDonnell Douglas
Finance Corporation (the "Company") will be 99.55% of the aggregate principal
amount of the Notes, or $29,865,000, before deduction of expenses payable by
the Company. In connection with the sale of the Notes, Merrill Lynch may be
deemed to have received compensation from the Company in the form of
underwriting discounts in the amount of .45% or $135,000.
Merrill Lynch and certain of its affiliates perform investment banking
and other financial services for certain affiliates of the Company in the
ordinary course of business.
MCDONNELL DOUGLAS FINANCE CORPORATION
The information in the Prospectus set forth in the third and fifth
sentences of the third paragraph under the caption "MCDONNELL DOUGLAS FINANCE
CORPORATION - Company Operations - Commercial Aircraft Financing" is amended
by the following:
Company financings to TWA accounted for $262.9 million (13.6% of
total Company portfolio) at March 31, 1994 and $102.9 million (5.8% of
total Company portfolio) at December 31, 1992. Company financings to
Continental accounted for $114.2 million (5.9% of total Company
portfolio) at March 31, 1994 and $120.9 million (6.8% of total Company
portfolio) at December 31, 1992.
USE OF PROCEEDS
The information in the Prospectus set forth under the caption "USE OF
PROCEEDS" is amended by the following:
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Proceeds from the sale of the Notes, together with proceeds from the
contemporaneous sale of additional Series IX Medium-Term Notes, will be
used primarily to fully repay a bridge loan made by a consortium of banks
to a wholly-owned subsidiary of the Company. The loan is a floating rate
loan which is non-recourse to the Company, bearing interest at one month
LIBOR plus 1.75% and maturing in November 1994. The loan was obtained to
temporarily finance the acquisition of an aircraft from McDonnell Douglas
Corporation.
