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Filed Pursuant to
Rule 424(b)(3)
File No. 33-31419
PRICING SUPPLEMENT NO. 114 DATED
February 17, 1994 TO PROSPECTUS
DATED May 21, 1993
McDONNELL DOUGLAS FINANCE CORPORATION
General Term Notes (R), Series A
Due 9 Months to 25 Years from date of issue
Interest payable Semi-annually on February 15th and August 15th
and at maturity
Except as set forth herein, the General Term Notes(R) offered hereby (the
"Notes") have such terms as are described in the accompanying Prospectus dated
May 21, 1993, as amended and supplemented by the Prospectus Supplement dated
November 18, 1993 (the "Prospectus").
Aggregate Principal Amount: $ 215,000.00
Original Issue Date
(Settlement Date): February 25, 1994
Stated Maturity Date: February 15, 2004
Issue Price to Public: 100.00% of Principal Amount
Interest Rate: 6.75% Per Annum
Interest Payment Dates: February 15 and August 15 commencing August 15,
1994
Survivor's Option: [ X ] Yes
[ ] No
Optional Redemption: [ X ] Yes
[ ] No
Initial Redemption Date: February 15, 1997
Redemption Price: Initially 102.00% of Principal Amount and
declining by 1.00% of the Principal Amount on
each anniversary of the Initial Redemption Date
until the Redemption Price is 100% of the
Principal Amount.
Principal Amount of Notes
Agent Solicited by Each Agent
PaineWebber, Inc. $ 205,000.00
Kemper Securities, Inc. 10,000.00
Total $ 215,000.00
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Per Note Per Note
Sold by Agents Sold by Agents
To Public To Employees Total
Issue Price: $ 1,000.00 $ -0- $ 215,000.00
Agent's Discount
or Commission: $ 16.50 $ -0- $ 3,547.50
Maximum Dealer's
Discount or
Selling Concession: $ 11.00 $ -0- $ 2,365.00
Proceeds to the
Company: $ 983.50 $ -0- $ 211,452.50
CUSIP Number: 58017CET5
SELECTED CONSOLIDATED FINANCIAL DATA
The following amends and supplements the information set forth under the
caption "SELECTED CONSOLIDATED FINANCIAL DATA" on page 10 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
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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.
(R) Registered Servicemark of J. W. Korth & Company
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