Filed Pursuant to
Rule 424(b)(3)
File No. 33-31419
PRICING SUPPLEMENT DATED
January 4, 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): January 5, 1994
Stated Maturity Date: December 28, 1998
Issue Price: 100.00% of Principal Amount
Interest Rate: 6.35% Per Annum
Interest Payment Dates: March 15 and September 15 commencing
March 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: 58017DCM0
AGENT
The Notes being offered hereby are being offered through Merrill
Lynch, Pierce, Fenner & Smith Incorporated (doing business as Merrill
Lynch & Co.) ("Merrill"), as Agent. Net proceeds payable to McDonnell
Douglas Finance Corporation (the "Company") will be 99.936% of the
aggregate principal amount of the Notes, or $14,990,400, before
deduction of expenses payable by the Company. In connection with the
sale of the Notes, Merrill will receive a commission from the Company
in the amount of .064% or $9,600.
OTHER INFORMATION
The information in the Prospectus set forth under the caption
"RISK FACTORS-Relationship with MDC" is supplemented by the following:
<PAGE>
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 expects to record 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 U.S. Navy has advised MDC and General Dynamics Corporation
("GD") that the 1993 review of the deferment agreement between
MDC, GD and the Navy with respect to the A-12 aircraft is
continuing, in particular with respect to the impact of the C-17
settlement between the Government and MDC described in the
preceding paragraph. The Navy has stated that MDC and GD will be
advised of the results of the review and any action that may be
taken by the Government on or about February 4, 1994. MDC and GD
also were advised that this timing does not suggest any adverse
implication for the outcome of the review. MDC firmly believes it
is entitled to have the deferment agreement continued and did not
agree to the Navy's unilateral continuation of the review.
