Boeing Said to Seek Another $4 Billion of Liquidity From Banks
- Revolving credit facility could grow to as much as $6 billion
- Revolver loans typically used as a back-up form of liquidity
Photographer: Simon Dawson/Bloomberg
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Boeing Co. is seeking a new $4 billion revolving credit facility from a group of banks, according to people with knowledge of the matter, as it prepares to ride out a potentially lengthy slowdown in global aircraft demand.
The planemaker has the option to increase the size of the two-year facility to as much as $6 billion, said the people, asking not to be identified as the transaction is private. So-called “revolver” loans are typically left undrawn by investment-grade rated firms such as Boeing and are used as a back-up form of liquidity.