Boeing Shops $10 Billion Loan at Price Similar to Older Debt
- Company seeks to pay rates in line with existing revolvers
- Citi-led $10 billion delayed-draw term loan wraps up this week
Photographer: David Ryder/Getty Images
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Boeing Co. is marketing its new $10 billion loan deal with pricing in line with the company’s existing credit lines, according to people familiar with the matter.
The loan, which would help the U.S. planemaker ease its growing financial strain, will have a margin of 100 basis points over the London interbank offered rate, the people said. Boeing will pay a 9 basis point ticking fee while it doesn’t draw the money, the people added. The debt will mature in two years and be structured as a delayed-draw term loan, which allows Boeing to access the funds at a later date, Bloomberg previously reported. Citigroup Inc. is leading the deal.