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Filed Pursuant to
Rule 424(b)(3)
File No. 33-31419
PRICING SUPPLEMENT DATED
May 20, 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, 1996
Issue Price: 100.00% of Principal Amount
Base Rate: LIBOR
Spread: 26 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 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
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<PAGE>
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Optional Redemption: [ ] Yes
[ X ] No
Form of Notes Issued: [ X ] Book-Entry Notes
[ ] Certificated Notes
CUSIP Number: 58017DCR9
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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 Chase
Securities, Inc. ("Chase") 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 Chase. Net proceeds payable by Chase to McDonnell
Douglas Finance Corporation (the "Company") will be 99.75% of the aggregate
principal amount of the Notes, or $29,925,000, before deduction of expenses
payable by the Company. In connection with the sale of the Notes, Chase may
be deemed to have received compensation from the Company in the form of
underwriting discounts in the amount of .25% or $75,000.
Chase and certain of its affiliates perform investment banking and other
financial services for the Company and certain of its affiliates in the
ordinary course of business.
USE OF PROCEEDS
The information in the Prospectus set forth under the caption "USE OF
PROCEEDS" is amended by the following:
Proceeds from the sale of the Notes, together with proceeds from the
contemporaneous sale to Chase of $60,000,000 of additional Series IX
Medium-Term Notes, will be used primarily to fully repay a bridge loan
made by a consortium of banks, including an affiliate of Chase, to a
wholly-owned subsidiary of the Company. The Company currently
anticipates that a portion of the proceeds from the sale of the Notes and
the other Series IX Medium-Term Notes contemporaneously herewith being
sold to Chase, together with proceeds from the anticipated sale of up to
an additional $60,000,000 of its Series IX Medium Term Notes, will be
used to fully repay a second bridge loan also made by such banks to
another wholly-owned subsidiary of the Company. If the Company is unable
or unwilling to sell such additional Series IX Medium-Term Notes at the
prevailing market rates, the proceeds from sale of the Notes and the
additional Series IX Medium-Term Notes contemporaneously herewith being
sold to Chase which are not used to repay the first loan will be used for
general corporate purposes. Both of the loans are floating rate loans
which are non-recourse to the Company, bearing interest at one month
LIBOR plus 1.75% and maturing in November 1994. The loans were obtained
to temporarily finance the acquisition of two aircraft from McDonnell
Douglas Corporation.
