Narrative
Full Description
Project narrative
On February 6, 2020, financial close was reached on a deal in which a syndicate of 19 banks — including Bank of China — entered into a $13 billion USD syndicated delayed-draw term loan agreement with Boeing Company — a United States–based aerospace manufacturer and defense contractor. The maturity of the loan is 2 years, and the interest rate is LIBOR plus an applicable margin. The proceeds were used by the borrower to strengthen liquidity and provide financial flexibility during a period of severe financial strain due to the grounding of the 737 MAX aircraft and the emerging COVID-19 crisis. The loan’s delayed-draw structure allowed Boeing to access funds only as needed. While Bank of China contributed $500 million USD to this loan, the following lenders also participated: Citibank N.A. (individually and as Agent), JPMorgan Chase Bank N.A., Bank of America N.A., Wells Fargo Bank N.A., BNP Paribas, Deutsche Bank AG New York Branch, Mizuho Bank Ltd., Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, Commerzbank AG New York Branch, Crédit Agricole Corporate and Investment Bank, Morgan Stanley Bank N.A., MUFG Bank Ltd., Banco Bilbao Vizcaya Argentaria S.A. New York Branch, Banco Santander S.A. New York Branch, DBS Bank Ltd., Goldman Sachs Bank USA, Société Générale, and PNC Financial Services Group.
Staff comments
1. The entirety of the loan contract can be accessed at https://contracts.justia.com/companies/boeing-191/contract/89939/ 2. Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. Founded in 1916 and headquartered in Arlington, Virginia, Boeing is one of the largest global aerospace manufacturers and a major defense contractor. 3. The original loan contract does not show BOC as a participant. However, it's known that BOC joined as a participant sometime in Februrary 2020. 4. AidData estimates the interest rate by adding the 6-month average LIBOR rate in February 2020 and an applicable margin based on Boeing’s credit rating at the time (A-, 1%).