Boeing enters into new $13 billion two-year delayed-draw term loan

By Sarah Lizee

Olympia, Wash., Feb. 7 – Boeing Co. entered into a $13 billion two-year delayed-draw term loan credit agreement on Thursday with Citibank, NA, JPMorgan Chase Bank, NA, BofA Securities, Inc. and Wells Fargo Securities, LLC as joint lead arrangers and joint book managers, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA and Wells Fargo Bank, NA are documentation agents. JPMorgan is the syndication agent, and Citibank is the administrative agent.

Boeing will pay a fee between 5 bps and 15 bps per annum on the commitments, depending on Boeing’s credit rating.

Pricing is equal to the ICE benchmark settlement rate plus 75 bps to 125 bps, based on Boeing’s credit rating.

Commitments are scheduled to terminate no later than Aug. 6, 2021, with Feb. 6, 2022 as the final maturity date.

There are covenants restricting Boeing’s ability to permit consolidated debt in excess of 60% of its total capital or to incur liens, merge or consolidate with another entity.

Boeing is a Chicago-based aerospace company.

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