Investing.com -- United Launch Alliance plans to raise approximately $500 million through a private bond placement to refinance existing debt, according to a Bloomberg report Wednesday.

The rocket joint venture, owned by Boeing Co. and Lockheed Martin Corp., provides launch services for the US military and commercial customers including Amazon.com Inc.

US Bancorp, Mizuho Financial Group Inc., and Wells Fargo & Co. are reportedly arranging the transaction.

The bonds will be structured as a true private placement, meaning they will not be registered or offered in public markets. Instead, the debt will be sold directly to institutional investors.

Private placements allow companies to avoid volatile public offerings. The private placement market recorded record issuance through May of this year, with borrowers including the National Football League and Brady Corp.

Boeing and Lockheed Martin established United Launch Alliance in 2006. The company is among a small group of US firms authorized to launch sensitive satellites for the Defense Department.