Boeing Enters New $3B Credit Facility, Amends Two Others Totaling $7B
BOEING CO
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Filing Summary
Boeing ($BA) has entered into a new $3.0 billion, 364-day revolving credit agreement and amended two existing five-year credit agreements totaling $7.0 billion. The new and amended agreements, totaling $10.0 billion in commitments, extend debt maturities and add a covenant requiring at least $5.0 billion in liquidity.
Comprehensive Analysis
Summary of Material Definitive Agreements
On August 24, 2026, The Boeing Company finalized several significant credit arrangements to bolster its financial position:
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New 364-Day Credit Agreement: Boeing entered into a new $3.0 billion, 364-day revolving credit agreement, replacing a previous facility of the same size. This new facility is scheduled to terminate on August 23, 2027, with options for extension.
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Amended Five-Year Credit Agreements: The company also amended and extended the terms of two existing five-year credit agreements:
- The $4.0 billion agreement (originally from May 2024) is now scheduled to terminate on May 15, 2030.
- The $3.0 billion agreement (originally from August 2023) is now scheduled to terminate on August 24, 2029.
Key Financial Terms & Covenants:
- Interest & Fees: Borrowing costs for the new facility are tied to Boeing's credit rating, with SOFR-based loans bearing interest at Term SOFR plus a spread of 1.250% to 1.700%.
- Liquidity Covenant: A significant new term added to all three agreements is a covenant requiring Boeing to maintain a minimum liquidity of $5.0 billion.
- Debt Covenant: The agreements include a covenant restricting consolidated debt to a maximum of 60% of the company's total capital.
These actions provide Boeing with a total of $10.0 billion in revolving credit commitments, extending its debt maturity profile and reinforcing its liquidity.
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