Boeing gets $2.5 billion 364-day revolver, extends five-year revolver

By Tali Rackner

Minneapolis, Nov. 3 – Boeing Co. entered into a $2.5 billion 364-day revolving credit agreement on Nov. 2 with Citibank, NA as administrative agent, Citigroup Global Markets Inc. and JPMorgan Chase Bank, NA as joint lead arrangers and book managers and JPMorgan as syndication agent, according to an 8-K filing with the Securities and Exchange Commission.

This facility replaces Boeing’s previous 364-day credit agreement, which was set to terminate on Nov. 1.

The new facility is scheduled to terminate on Oct. 31, 2018, but the company has the right to extend the term for an additional 364 days or, with payment of additional fees, convert outstanding borrowings into term loans with a one-year maturity.

Borrowings will bear interest at the ICE benchmark settlement rate plus 83.5 basis points. There is also a 4 bps commitment fee.

Also on Nov. 1, the company amended its five-year credit agreement dated Nov. 10, 2011 to, among other things, extend the term.

The 2011 credit agreement is now scheduled to terminate on Nov. 2, 2022 with respect to $2.47 billion of the total commitments and on Nov. 2, 2021 for $30 million of the total commitments.

Citigroup Global Markets and J.P. Morgan Securities LLC are joint lead arrangers and joint bookrunners under the 2011 credit agreement, with JPMorgan Chase Bank as syndication agent and Citibank as administrative agent.

Boeing is a Chicago-based aerospace company.

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