Boeing has secured $12 billion from more than a dozen banks to strengthen its balance sheet following the crashes of two 737 Max jets that killed all 346 people on board, CNBC reported on Monday.
Citing sources familiar with the matter, the broadcaster said Boeing gained $2 billion more than it originally sought. The financing is seen as a vote of confidence in the aircraft maker, CNBC said.
Boeing declined to comment.
CNBC said the financing will be a two-year, “delayed draw” loan, meaning Boeing can tap the money as needed rather than taking all or some of the cash now and accruing interest charges.
The cable network said this may not hurt the company’s credit rating as other types of loans or tapping the bond market might.
This month Boeing said it planned to explore the possibility of selling bonds to raise additional funds. After reviewing Boeing’s balance sheet, S&P Global, Moody’s Investors Service and Fitch downgraded Boeing’s bond ratings by one notch.
The downgrade of senior and short-term debt likely would force Boeing to cut the price of its bonds and pay a higher interest rate if it turned to the bond market to raise additional funds to cover future expenses. Bond prices and yields move in opposite directions.
The world’s largest aircraft manufacturer has said it now expects the Max to be recertified for commercial service by mid-2020. Last week, Boeing’s new CEO Dave Calhoun said the company plans to resume production of the 737 Max before the planes return to service.