What is the purpose of the new 364-day revolving credit agreement?

The new $3.0 billion, 364-day revolving credit agreement is designed to provide Boeing with continued access to short-term liquidity and financial flexibility, replacing a similar facility that reached its maturity date.

How do the interest rates and fees work for the new credit facility?

Interest rates and commitment fees for the new 364-day agreement are variable and depend on Boeing's credit rating. For SOFR-based borrowings, interest will be Term SOFR plus a margin of 1.250% to 1.700%. For other borrowings, interest will be based on a prime rate plus a margin of 0.250% to 0.700%. Commitment fees range from 0.125% to 0.300% per annum on the commitments.

What are the key financial covenants Boeing must adhere to under the new 364-day credit agreement?

Key financial covenants include maintaining consolidated debt not exceeding 60% of Boeing's total capital, restrictions on incurring liens, and a requirement to maintain a minimum liquidity of at least $5.0 billion. Failure to meet these or other conditions could lead to an event of default.

What impact do the extensions of the five-year credit agreements have?

The extensions of the five-year credit agreements, now maturing in 2030 and 2029 respectively, provide Boeing with longer-term access to significant credit lines ($4.0 billion and $3.0 billion), enhancing its overall financial stability and strategic planning capabilities. The addition of the $5.0 billion minimum liquidity covenant across these extended facilities also reinforces financial discipline.

BA/BA-PA 8-K: Material Agreements & Financial Events

01—Abstract

Summary

Summary of the 8-K filed August 28, 2026. Cited figures are marked; the original filing is the authoritative source.

The Boeing Company (BA) has entered into a new $3.0 billion^a, 364-day revolving credit agreement, replacing a similar facility that matured on August 24, 2026.

This new agreement, effective August 24, 2026, with Citibank, N.A. and JPMorgan Chase Bank, N.A., provides continued access to short-term liquidity and is structured with terms tied to Boeing's credit rating, including commitment fees and interest rates based on SOFR or a base rate. Concurrently, Boeing amended and extended two existing five-year revolving credit facilities: one dated May 15, 2024, now maturing on May 15, 2030, with $4.0 billion^b in commitments, and another dated August 24, 2023, now maturing on August 24, 2029, with $3.0 billion in commitments. These amendments also incorporate a requirement for Boeing to maintain a minimum liquidity of $5.0 billion across all facilities.

These financing activities demonstrate Boeing's proactive management of its liquidity and debt structure. The maintenance of significant revolving credit facilities, including the short-term 364-day agreement and extended longer-term agreements, provides financial flexibility.

Key covenants in the new 364-day agreement include a restriction on consolidated debt not exceeding 60% of total capital, limitations on incurring liens, and a minimum liquidity requirement of $5.0 billion^c. The successful refinancing and extension of these credit lines are positive indicators for operational continuity and investor confidence, ensuring access to capital for ongoing operations and strategic initiatives.

02—Key points

Key Highlights

Boeing entered into a new $3.0 billion, 364-day revolving credit agreement, effective August 24, 2026, with Citibank and JPMorgan.
This new facility replaces a previous $3.0 billion, 364-day revolving credit agreement that matured on August 24, 2026.
Boeing also amended and extended two existing five-year revolving credit agreements: the $4.0 billion 2024 agreement now matures in May 2030, and the $3.0 billion 2023 agreement now matures in August 2029.
All credit facilities require Boeing to maintain a minimum liquidity of $5.0 billion.
The new 364-day agreement includes covenants restricting consolidated debt to 60% of total capital and limits on incurring liens.
Borrowing costs under the new 364-day agreement are tied to Boeing's credit rating and will be based on SOFR or a prime rate plus a margin.
The amendments and new agreement provide Boeing with continued access to significant credit lines, supporting operational and financial flexibility.

03—Questions

Frequently Asked Questions

What is the purpose of the new 364-day revolving credit agreement?
The new $3.0 billion, 364-day revolving credit agreement is designed to provide Boeing with continued access to short-term liquidity and financial flexibility, replacing a similar facility that reached its maturity date.
How do the interest rates and fees work for the new credit facility?
Interest rates and commitment fees for the new 364-day agreement are variable and depend on Boeing's credit rating. For SOFR-based borrowings, interest will be Term SOFR plus a margin of 1.250% to 1.700%. For other borrowings, interest will be based on a prime rate plus a margin of 0.250% to 0.700%. Commitment fees range from 0.125% to 0.300% per annum on the commitments.
What are the key financial covenants Boeing must adhere to under the new 364-day credit agreement?
Key financial covenants include maintaining consolidated debt not exceeding 60% of Boeing's total capital, restrictions on incurring liens, and a requirement to maintain a minimum liquidity of at least $5.0 billion. Failure to meet these or other conditions could lead to an event of default.
What impact do the extensions of the five-year credit agreements have?
The extensions of the five-year credit agreements, now maturing in 2030 and 2029 respectively, provide Boeing with longer-term access to significant credit lines ($4.0 billion and $3.0 billion), enhancing its overall financial stability and strategic planning capabilities. The addition of the $5.0 billion minimum liquidity covenant across these extended facilities also reinforces financial discipline.

04—Continue

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