Boeing secures more than $12 billion in financing to help weather 737 Max crisis

posted on 28th January 2020 by Eddie Saunders
Boeing secures more than $12 billion in financing to help weather 737 Max crisis

Boeing has secured more than $12 billion in financing from more than a dozen banks as the industrial giant shores up its balance sheet amid the nearly yearlong grounding of the 737 Max following two fatal crashes, according to people familiar with the matter.

The manufacturer was trying to secure a loan of $10 billion, CNBC reported last week. 

The two crashes — a Lion Air flight in Indonesia in October 2018 and an Ethiopian Airlines flight last March — together killed all 346 people on board. 

CNBC reported on the loan size last week.

The financing will be a two-year delayed-draw loan, the people said, meaning that Boeing doesn’t have to use it all immediately, and is set to cost 100 points over Libor.

Boeing is expected to detail its financing strategy when it reports earnings before the market opens on Wednesday.