Boeing in Cash Flow Saving Mode, Halts Hiring

Posted on 03/11/2020


Boeing is in the midst of chaos as the Boeing 737 Max remains grounded. The Boeing 737 Max was the model used in two deadly crashes within five months of one another. In total, the two plane crashes killed all 346 people aboard the flights.

Boeing is also getting hit by the impact of the Wuhan coronavirus (COVID-19). Boeing is halting hiring effective immediately. Boeing is extracting cash from a more than US$ 13 billion loan it secured in January 2020. The loan was revealed on February 6, 2020, as a 2-year delayed draw term loan. The lenders include: Citibank, N.A., JPMorgan Chase Bank, N.A., Bank of America, and Wells Fargo Bank.

LENDERS – $13 Billion

Name of Initial Lender Commitment in USD
Citibank, N.A. 1,250,000,000
JPMorgan Chase Bank, N.A. 1,250,000,000
Bank of America, N.A. 1,250,000,000
Wells Fargo Bank, National Association 1,250,000,000
BNP Paribas 875,000,000
Deutsche Bank AG New York Branch 875,000,000
Mizuho Bank, Ltd. 875,000,000
Royal Bank of Canada 875,000,000
Sumitomo Mitsui Banking Corporation 875,000,000
Commerzbank AG, New York Branch 500,000,000
Credit Agricole Corporate and Investment Bank 500,000,000
Morgan Stanley Bank, N.A. 500,000,000
MUFG Bank, Ltd. 500,000,000
Banco Bilbao Vizcaya Argentaria, S.A. New York Branch 325,000,000
Banco Santander, S.A., New York Branch 325,000,000
DBS Bank Ltd. 325,000,000
Goldman Sachs Bank USA 325,000,000
Societe Generale 325,000,000
Total of Commitments: 13,000,000,000

Boeing also disclosed that it counted more commercial aircraft cancellations than new orders in February 2020 (18 gross orders and 46 cancellations). Other news includes Air Canada cancelling 11 737-Max aircraft while some other customers converted orders for bigger airplanes.

Keywords: The Boeing Company.

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