Boeing's Stock Pops 2.8% After Company Announces $10 Billion Credit Agreement -- MarketWatch

MarketWatch · 10/15 10:36

Boeing Co.'s stock (BA) rose 2.8% premarket Tuesday, after the aerospace giant said it has entered a $10 billion supplemental credit agreement with BofA Securities, Citibank NA, Goldman Sachs Lending Partners LLC and JPMorgan Chase Bank NA as joint lead arrangers and joint book managers. Boeing will pay a funding fee of 0.5% of the aggregate principal, as well as a duration fee of between 0.5% and 1.00% of the aggregate amount of outstanding advances and unused commitments under the agreement, which shall be payable 90 to 270 days after the closing date. The agreement comes with covenants that restrict Boeing's ability to permit consolidated debt in excess of 60% of its total capital or to incur liens in excess of $250 million, or merge or combine with another entity unless Boeing is the surviving one. Boeing's stock is down 43% in the year to date, weighed down by operational missteps, the threat of a credit rating downgrade to junk and a continuing strike by its machinists that is costing it an estimated $1 billion a month. The S&P 500 has gained 23% in the year to date.

-Ciara Linnane

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October 15, 2024 06:36 ET (10:36 GMT)