Boeing renews $3 billion 364-day revolver, extends longer facilities
The Boeing Company (NYSE: BA) entered a $3.0 billion, 364-day revolving credit agreement on Aug. 24, 2026, replacing a prior $3.0 billion facility that was set to terminate the same day, according to an Aug. 28 Form 8-K. Citibank, N.A. and JPMorgan Chase Bank, N.A. acted as joint lead arrangers and joint book managers, with Citibank as administrative agent.
Under the new facility, Boeing will pay a commitment fee of between 0.125% and 0.300% per annum depending on its credit rating. SOFR-based borrowings generally bear interest at Term SOFR plus 1.250% to 1.700%, also tied to ratings. The agreement is scheduled to terminate on Aug. 23, 2027, subject to Boeing’s right, after paying additional fees, to convert outstanding borrowings into term loans maturing one year after termination, and to request a further 364-day extension.
The facility includes covenants restricting consolidated debt above 60% of total capital, limiting liens and mergers, and requiring Boeing to maintain liquidity of at least $5.0 billion. Events of default include payment failures, material misrepresentations, uncured covenant breaches, certain cross-defaults, ERISA liabilities, and insolvency events.
The same day, Boeing amended its May 15, 2024 five-year revolving credit agreement ($4.0 billion of commitments, now scheduled to terminate May 15, 2030) and its Aug. 24, 2023 five-year revolving credit agreement ($3.0 billion of commitments, now scheduled to terminate Aug. 24, 2029). Each amendment extended the term by an additional 365 days and added the same $5.0 billion minimum liquidity covenant.
By the numbers
- New 364-day facility: $3.0 billion; terminates Aug. 23, 2027
- 2024 five-year facility: $4.0 billion; terminates May 15, 2030
- 2023 five-year facility: $3.0 billion; terminates Aug. 24, 2029
- Minimum liquidity covenant: $5.0 billion
- Debt-to-total-capital covenant: 60%
Sources
- The Boeing Company Form 8-K, accession 0001628280-26-059427
This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.
Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.
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