Boeing enters into $5.28bn revolving credit agreement

Industry

Boeing said it had entered into a $5.28 billion, two-year revolving credit agreement, as the US planemaker contends with a prolonged slowdown in commercial air travel fuelled by the Covid-19 pandemic. Earlier this month, Reuters reported that the company had approached a group of banks for a new $4 billion revolving credit facility and had the option to raise the size to as much as $6 billion. “We have no current plans to draw on our credit revolvers, as we continue to be confident that we have sufficient liquidity and are not planning to increase our debt levels,” said CFO Greg Smith. Citigroup, JPMorgan Chase Bank, BofA Securities and Wells Fargo Securities are the joint lead arrangers and joint book managers. The credit agreement is scheduled to end on 19 March, 2023, Boeing said in a filing. Investment-grade rated companies use revolving credit facilities as backstop financing, with these facilities remaining undrawn for the most part. In January, Boeing posted a record annual loss as the health crisis compounded problems for the world’s largest aerospace company that was reeling from the grounding of its best-selling 737 MAX jets after two fatal crashes.

 

Source: Civil Aviation Authority – Qatar