(Adds CFO comment, more background)
March 22 (Reuters) - Boeing Co said on Monday it had entered into a $5.28 billion, two-year revolving credit agreement, as the U.S. planemaker contends with a prolonged slowdown in commercial air travel fueled by the COVID-19 pandemic.
Earlier this month, Reuters reported that the company had approached a group of banks for a new $4 billion revolving credit facility and had the option to raise the size to as much as $6 billion. (reut.rs/3rbbe5p)
“We have no current plans to draw on our credit revolvers, as we continue to be confident that we have sufficient liquidity and are not planning to increase our debt levels,” said Chief Financial Officer Greg Smith.
Citigroup, JPMorgan Chase Bank, BofA Securities and Wells Fargo Securities are the joint lead arrangers and joint book managers, the planemaker said here on Monday.
The credit agreement is scheduled to end on March 19, 2023, Boeing said in a filing.
Investment-grade rated companies use revolving credit facilities as backstop financing, with these facilities remaining undrawn for the most part.
In January, Boeing posted a record annual loss as the health crisis compounded problems for the world’s largest aerospace company that was reeling from the grounding of its best-selling 737 MAX jets after two fatal crashes. (Reporting by Shreyasee Raj; Editing by Sriraj Kalluvila and Shinjini Ganguli)