Daily News: May 1, 2019

Citibank Agents $1.5M Short Term Loan for Boeing

Boeing secured a $1.5 billion credit line as a financial precaution while the company’s 737 Max sales remain on hold.

According to an 8-K filing, Citibank is serving as administrative agent. Citibank, JPMorgan and Merrill Lynch are joint lead arrangers and joint bookrunners. Bank of America and Citibank are serving as syndication agents.

The credit line is scheduled to terminate October 30, with an option for Boeing to extend it for one additional year. The credit line expands on Boeing’s existing, unused line of $5.1 billion in credit.

In a statement, Boeing spokesman Gordon Johndroe said the added line of credit “provides adequate financial flexibility to address financial market uncertainty, emerging business needs, as well as take advantage of potential strategic business opportunities should they arise.”

Bloomberg reported Boeing had a little more than $6.8 billion in cash and cash equivalents at the end of March, about 10 percent less than it did the prior year.