Business Context and Reporting Period
Company: The Boeing Company
Filing Type: Form 8-K (Current Report)
Date of Report: November 2, 2016
Event: Entry into a Material Definitive Agreement regarding corporate credit facilities.
Key Financial Metrics and Agreements
- New Credit Facility: Entered into a $2.48 billion, 364-day revolving credit agreement.
- Fee Structure: 0.04% per annum on commitments.
- Interest Rates:
- Non-Eurodollar: Highest of (1) Citibank base rate, (2) Federal funds rate + 0.50%, or (3) ICE benchmark + 1.00%.
- Eurodollar-based: ICE benchmark settlement rate + 0.835% per annum.
- Debt Covenants: Restricts consolidated debt to no more than 60% of total capital.
- Existing Facility Amendment: Extended the 5-Year Credit Agreement (originally dated 2011) via Amendment No. 3.
- $2.37 billion portion terminates November 2, 2021.
- $90 million portion terminates November 10, 2019.
- $60 million portion terminates November 10, 2017.
Material Changes Versus Prior Period
The new 364-Day Credit Agreement replaces the previous 364-day credit agreement that was scheduled to terminate on November 2, 2016. Additionally, the maturity dates for the 5-Year Credit Agreement were extended through Amendment No. 3, pushing the primary termination date from the original schedule to November 2, 2021.
Guidance, Risks, and Contingencies
Events of Default: The agreements specify default triggers including failure to pay principal/interest within five business days, material misrepresentation, failure to perform covenants (30-day cure period), cross-defaults, ERISA liabilities, and bankruptcy/insolvency.
Consequences of Default: Lenders may accelerate repayment of all outstanding amounts and cease advancing additional funds.
Extension Options: Boeing retains the right to extend the 364-Day Credit Agreement for an additional 364 days or convert outstanding borrowings into term loans with a one-year maturity following the termination date, subject to additional fees.
Financial Performance: This filing does not provide revenue, profit, cash flow, or margin data.
Investor Verification Checklist
- Verify the total outstanding borrowings under the new $2.48 billion facility and the amended 5-Year Credit Agreement.
- Confirm current consolidated debt levels to ensure compliance with the 60% of total capital covenant.
- Review the specific terms of the extension or conversion options for the 364-Day Credit Agreement.
- Check for any subsequent filings regarding the utilization of these credit lines.