Boeing entered a $3.0 billion, 364-day revolving Credit agreement with Citibank, JPMorgan Chase Bank and a lender syndicate, running through August 23, 2027. The agreement replaces an expiring facility, while amendments extend two five-year agreements and require Boeing to maintain at least $5.0 billion of liquidity.

Key Highlights

  • Boeing will pay commitment fees ranging from 0.125% to 0.300%, based on its credit rating.
  • The agreement limits consolidated Debt to no more than 60% of Boeing’s total capital.
  • Amendments extend the $4.0 billion 2024 Facility to 2030 and the $3.0 billion 2023 facility to 2029.

Boeing (NYSE: BA) also amended two five-year credit agreements on the same date.

$3.0 Billion Facility Replaced

Citibank serves as administrative agent, while JPMorgan acts as syndication agent. The two banks are joint lead arrangers and joint book managers for the revolving credit agreement.

The facility allows Boeing to request that lenders extend its term for an additional 364 days. After paying additional fees, Boeing can also convert outstanding borrowings into term loans that mature on the one-year anniversary of the scheduled termination date.

The new agreement therefore replaces the expiring revolving arrangement while preserving a $3.0 billion commitment and setting a new scheduled termination date of August 23, 2027.

Credit Pricing Tied to Ratings

Boeing will pay an annual fee on the commitments ranging from 0.125% to 0.300%, with the applicable rate determined by its credit rating. Other borrowings use the highest of Citibank’s publicly announced base rate, the federal funds rate plus 0.50%, or one-month Term SOFR plus 1.00%. The agreement sets separate pricing mechanics for SOFR-based and other borrowings.

Debt And Liquidity Conditions

The agreement restricts Boeing from allowing consolidated debt to exceed 60% of its total capital. It also contains restrictions covering liens and mergers or consolidations.

Boeing must maintain liquidity of at least $5.0 billion under the 364-day agreement. The liquidity requirement was also added to the two amended five-year credit agreements.

The credit agreement includes customary conditions and events of default, including failures involving payment, representations, covenants and other obligations.

Two Five-Year Lines Extended

The 2024 Five-Year Credit Agreement was amended to extend its term for an additional 365 days.

The 2023 Five-Year Credit Agreement also received an additional 365 days. Its amended commitments total $3.0 billion, and its scheduled termination date is August 24, 2029.

The 2024 and 2023 agreements now include the requirement that Boeing maintain liquidity of at least $5.0 billion. Boeing’s new revolving credit agreement and the amended five-year facilities establish the stated borrowing commitments and Maturity dates.

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