Boeing enters into $5.28 billion revolving credit agreement
Reuters
Published Mar 22, 2021 04:51PM ET
Updated Mar 22, 2021 06:20PM ET
(Reuters) - Boeing (NYSE:BA) Co said on Monday it had entered into a $5.28 billion, two-year revolving credit agreement, as the U.S. planemaker contends with a prolonged slowdown in commercial air travel fueled 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. (https://reut.rs/3rbbe5p)
"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 Chief Financial Officer Greg Smith.
Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM) Bank, BofA Securities and Wells Fargo (NYSE:WFC) Securities are the joint lead arrangers and joint book managers, the planemaker said https://www.sec.gov/ix?doc=/Archives/edgar/data/12927/000119312521089532/d149318d8k.htm on Monday.
The credit agreement is scheduled to end on March 19, 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.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.