(C) Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York
(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 of to as much as $6 billion. (https://reut.rs/3rbbe5p)
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.
Boeing enters into $5.28 billion revolving credit agreement
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