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Filed Pursuant to
Rule 424(b)(3)
File No. 33-58989
PRICING SUPPLEMENT NO. 12 DATED
February 1, 1996 TO PROSPECTUS
DATED June 15, 1995 AND PROSPECTUS
SUPPLEMENT DATED June 15, 1995
McDONNELL DOUGLAS FINANCE CORPORATION
Series X Medium-Term Notes
Due Nine Months or More From Date of Issue
Except as set forth herein, the Series X Medium-Term Notes offered hereby
(the "Notes") have such terms as are described in the accompanying Prospectus
dated June 15, 1995, as amended and supplemented by the Prospectus Supplement
dated June 15, 1995 (the "Prospectus").
Aggregate Principal Amount: $10,000,000
Original Issue Date
(Settlement Date): February 6, 1996
Stated Maturity Date: February 8, 1999
Interest Rate: 5.48%
Interest Payment Dates: January 15 and July 15 commencing July 15, 1996
Type of Notes Issued: [ ] Senior Notes [X] Fixed Rate Notes
[X] Subordinated Notes [ ] Floating Rate Notes
Optional Redemption: [ ] Yes
[X] No
Form of Notes Issued: [X] Book-Entry Notes
[ ] Certificated Notes
CUSIP Number: 58017EAL2
PURCHASE AS PRINCIPAL
This Pricing Supplement relates to $10,000,000 aggregate principal amount
of Notes that are being purchased, as principal, by PaineWebber Incorporated
("PWI") for resale to one or more investors at varying prices related to
prevailing market conditions at the time or times of resale as determined by
PWI. Net proceeds payable by PWI to McDonnell Douglas Finance Corporation
(the "Company") will be 99.734% of the aggregate principal amount of the
Notes, or $9,973,400 before deduction of expenses payable by the Company. In
connection with the sale of the Notes, PWI may be deemed to have received
compensation from the Company in the form of underwriting discounts in the
amount of .266% or $26,600.
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SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in millions)
The following amends and supplements the information set forth under the
caption "SELECTED CONSOLIDATED FINANCIAL DATA" on page 4 of the Prospectus:
The following table presents selected consolidated financial information
of the Company as of December 31, 1994 and September 30, 1995, and for the
nine months ended September 30, 1995 and September 30, 1994. 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 Quarterly Report on Form 10-Q for the period ended
September 30, 1995. Results of the nine months ended September 30, 1995, are
not necessarily indicative of the results of the entire year. Such results
are unaudited, but include all adjustments, consisting of normal accruals,
that the Company considers necessary for a fair presentation of the results
for such interim periods. See "Selected Consolidated Financial Data" in the
accompanying Prospectus.
Nine Months Ended
Sept. 30, 1995 Sept. 30, 1994
Selected earnings data:
Operating income . . . . . . . . . . $ 141.8 $ 142.8
Interest expense . . . . . . . . . . 76.6 83.2
Net income . . . . . . . . . . . . . 29.0 22.5
Ratio of earnings to fixed charges. . . . . .1.57x 1.42x
Sept. 30, 1995 Dec. 31, 1994
Selected balance sheet data:
Total assets . . . . . . . . . . . . $1,922.1 $ 1,929.6
Total debt . . . . . . . . . . . . 1,242.0 1,215.1
Shareholder's equity . . . . . . . . 270.7 271.9
Cash dividends paid . . . . . . . . . 30.2 29.9
