Boeing has secured two credit facilities from lenders, Citibank and JPMorgan, for a total of $3.8 billion. This financing replaces the US manufacturer’s existing $5.8 billion, 364-day revolving credit agreement, which was scheduled to terminate on August 24, 2023.
Boeing has secured one 365-day $800 million revolving credit agreement and a separate $3bn five-year revolver, both with Citibank and JPMorgan as joint lead arrangers and joint book managers.
For the 365-day revolver, Boeing will pay a fee of between 0.125% and 0.3% annually, and SOFR + between 1.250% and 1.7% per annum, both are linked to Boeing’s credit rating. The five year $3bn revolver is priced at SOFR+ between 1.200% and 1.650% per year and a 0.175% and 0.350% annual fee, again depending on the credit rating.
The $800 million agreement is set to expire on August 22, 2024 but Boeing has the right to extend the term for an additional 364 days. Boeing also has the right to extend the five-year revolver on any anniversary of the closing for one additional year.
“Boeing’s three-year revolving credit agreement, dated as of August 25, 2022, which consists of $3.0 billion of total commitments and Boeing’s five-year revolving credit agreement, dated as of October 30, 2019, as amended, which consists of $3.2 billion of total commitments, each remain in effect,” the company noted in the SEC filing.