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Filed Pursuant to
Rule 424(b)(3)
File No. 33-31419
PRICING SUPPLEMENT DATED
January 25, 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: $ 20,000,000
Original Issue Date
(Settlement Date): January 26, 1994
Stated Maturity Date: March 3, 1997
Issue Price: 100.00% of Principal Amount
Interest Rate: 5.48% 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: 58017DCN8
PURCHASE AS PRINCIPAL
This Pricing Supplement relates to $20,000,000 aggregate principal of
Notes that are being purchased, and may be offered, as principal, by Salomon
Brothers Inc ("Salomon Brothers") for resale 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 Salomon Brothers. Net proceeds
payable by Salomon Brothers to McDonnell Douglas Finance Corporation (the
"Company") will be 99.869% of the aggregate principal amount of the Notes, or
$19,973,800, before deduction of expenses payable by the Company. In
connection with the sale of the Notes, Salomon Brothers may be deemed to have
received compensation from the Company in the form of an underwriting discount
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in the amount of .131% or $26,200.
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 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.
