Boeing has signed a $3bn revolving credit agreement on August 25, 2025.
The deal was signed with Citibank and JP Morgan Chase Bank, both acting as joint lead arrangers and joint book managers, Citibank acted as administrative agent, JPMorgan as syndication agent, and a syndicate of lenders as defined in the agreement.
The facility replaces Boeing's previous $3bn three-year revolving credit agreement, which was scheduled to terminate on August 25, 2025.
Under the agreement, Boeing will pay a fee of between 0.125% and 0.300% per annum on the commitments, depending on Boeing's credit rating. Borrowings under the agreement that use SOFR will generally have an interest rate equal to Term SOFR plus 1.25% to 1.70%, depending on Boeing's credit rating. Other borrowings under the agreement will bear interest at the highest Citibank base rate, the federal funds rate plus 0.50%, or one-month term SOFR plus 1.00%, with an added 0.25%-0.70% depending on Boeing's credit rating.
The agreement will terminate on August 24, 2026, but Boeing may extend it by converting outstanding borrowings into one-year term loans for a fee or by requesting a year extension.
The new financing agreement includes covenants that restricts Boeing's ability to permit consolidated debt to no more than 60% of its total capital and requires it to keep at least $5bn in liquidity.
Boeing's five-year $4bn revolving credit agreement from May 2024 and its five-year $3bn revolving credit agreement from August 2023 both remain in effect.