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|
|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|
|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|
|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.