BAE Eases Order Terms as Crude Clouds Gulf Eurofighter Prospects
- Europe's No. 1 defense firm may require smaller downpayments
- $1.5 billion bond sale will give company room for maneuver
A Eurofighter Typhoon FGR4 fighter jet, produced by BAE Systems Plc.
Photographer: Paul Thomas/BloombergThis article is for subscribers only.
BAE Systems Plc is offering new options for funding defense deals as the low oil price impacts the spending power of clients in the Middle East, clouding sales prospects for weaponry including the Eurofighter warplane.
A $1.5 billion bond sale will support BAE’s cash levels over the next two years, providing it with the flexibility to broker deals requiring smaller upfront payments from customers, Chief Financial Officer Peter Lynas said Thursday.