Summary
Boeing Co. (BA) has entered into a new $2.5 billion, 364-day revolving credit agreement, replacing its previous facility that expired on November 1, 2017. This new agreement provides Boeing with short-term liquidity and is set to mature on October 31, 2018, with options for extension. The terms include a commitment fee and defined interest rates based on base or Eurodollar rates, along with customary covenants restricting debt levels and mergers, and standard events of default. In addition to the new short-term facility, Boeing also amended its existing five-year revolving credit agreement. This amendment, specifically Amendment No. 4, extends the maturity date of the five-year agreement to November 1, 2022, for the majority of its approximately $2.47 billion commitment. These actions indicate Boeing's proactive approach to managing its credit facilities and ensuring financial flexibility.
Key Highlights
- 1Boeing entered into a new $2.5 billion, 364-day revolving credit agreement, effective November 1, 2017.
- 2The new credit facility replaces a prior 364-day agreement expiring on the same date.
- 3The agreement matures on October 31, 2018, with provisions for extension and conversion to term loans.
- 4Key terms include a 0.04% annual commitment fee and defined interest rates tied to base or Eurodollar rates.
- 5Customary covenants restrict consolidated debt to 60% of total capital and limit mergers/consolidations.
- 6Events of default are defined, including payment failures, incorrect representations, cross-defaults, ERISA liabilities, and insolvency.
- 7Boeing also amended its five-year credit agreement, extending its maturity to November 1, 2022, for approximately $2.47 billion.