Boeing has called for a $60 billion package of support for what it terms the “US aerospace manufacturing industry,” just days after the airframe revealed in an 8-K filing to the Securities and Exchange Commission that it had fully drawdown on a $13.8 billion revolving credit facility.
Following US President Trumps public statement of support Boeing put out a statement saying that it “supports” a minimum of $60 billion in access to public and private liquidity, including loan guarantees, for the aerospace manufacturing industry.
“We appreciate the support of the President and the Administration for the 2.5 million jobs and 17,000 suppliers that Boeing relies on to remain the number one US exporter, and we look forward to working with the Administration and Congress as they consider legislation and the appropriate policies,” Boeing said in a statement.
“This will be one of the most important ways for airlines, airports, suppliers and manufacturers to bridge to recovery. Funds would support the health of the broader aviation industry, because much of any liquidity support to Boeing will be used for payments to suppliers to maintain the health of the supply chain. The long term outlook for the industry is still strong, but until global passenger traffic resumes to normal levels, these measures are needed to manage the pressure on the aviation sector and the economy as a whole,” Boeing added.
The statement also said the firm had filed an 8-K form with the SEC regarding the full drawdown of the $13.8billion revolve facility which it first announced in February this year.
“As reported last week, drawing on our delayed draw loan term was a prudent step to increase our liquidity and ease some of the significant near-term pressures on our business. We filed an 8-K today to formally disclose that draw down,” said Boeing.
The latest 8-K filed by Boeing said that while it had “fully drawn” the $13.8 billion facility, which it announced to the market on February 6 it still had full access to three loan facilities, totalling $9.6 billion, which it agreed in October 2019.
According to an 8K filed by Boeing on November 1, 2019, it had agreed three facilities of $3.2 billion, with tenors of one, three and five years. Citibank and JP Morgan Chase acted as lead arrangers on all three issues.
“These facilities, which to date have not been drawn upon, provide us with additional liquidity as we navigate the current business challenges,” said Boeing’s latest 8-K filing.