Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Monday, January 20, 2020 12:28:33 PM
By: TheStreet | January 20, 2020
• Troubled airplane maker Boeing is in talks with several banks to secure some $10 billion or more in loans to offset 737 Max-related costs.
Embattled airplane maker Boeing (BA) is in discussions with several banks to secure some $10 billion or more in loans to offset costs stemming from a production halt of its grounded 737 Max jetliners following two fatal crashes.
Citing people familiar with the discussions, CNBC reported on Monday that the Seattle-based company has so far secured at least $6 billion from a group of banks, and is talking to other lenders about more.
CNBC said the loan Boeing is currently negotiating will likely be a delayed-draw loan, meaning Boeing can tap into it later, a move that may not immediately affect its credit rating.
Both Moody’s Investors Service and S&P in December downgraded Boeing’s credit rating, with Moody's going a step further last week saying its current 'A3' rating is on review due to the extended issues with the 737 Max.
Banks that have already committed to contribute to the loan include Citigroup (C), BoA Merrill Lynch (BAC), Wells Fargo (WFC) and JPMorgan Chase (JPM), CNBC said, citing sources.
The news follows reports earlier this month that Boeing had been in discussions with a group of unnamed banks about a potential loan, possibly structured as an investment-grade term loan, with Citigroup reportedly leading the talks.
Boeing signed new revolving credit facilities totaling $9.5 billion back in October, and almost doubled the size of its existing lender commitments, according to Bloomberg News.
The return of the 737 Max to the skies has faced several significant hurdles, including a new software issue disclosed by the company just last week. Boeing announced earlier this month that it was halting production of the 737 Max outright.
To be sure, analysts expect Boeing to take billions in charges. Canaccord analyst Ken Herbert was the latest analyst to cut his price target on Friday on what he expects to be at least a $5 billion charge to fourth-quarter earnings.
The charge could reflect changes to accounting block cost assumption as well as additional customer concessions, Herbert said in a research note to clients, leading to his more than $5 billion estimate. He cut his one-year price target to $350 a share from $370.
Boeing will release its fourth-quarter results on Jan. 29.
Shares of Boeing ended the trading day Friday down 2.36%, or $7.85 a share, at $324.15. U.S. markets were closed on Monday in observance of Martin Luther King day.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent BA News
- Visa Faces Monopoly Lawsuit; Meta Introduces Celebrity Voices for Chatbot; Stellantis on the Hunt for New CEO • IH Market News • 09/24/2024 10:15:50 AM
- Apollo Eyes $5 Billion Investment in Intel; TSMC and Samsung Explore UAE Chip Projects, and More • IH Market News • 09/23/2024 10:32:25 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/20/2024 09:27:37 PM
- Boeing Completes First Flight of UK E-7 Wedgetail • PR Newswire (US) • 09/20/2024 07:53:00 PM
- AIG names new CFO; Progyny Drops 24% After Losing Key 2025 Contract; Exicure Jumps 190% With Nasdaq Extension • IH Market News • 09/19/2024 10:26:48 AM
- Meta Strengthens Child Privacy on Instagram; Google Overturns $1.7 Billion Antitrust Fine; Snap Updates Spectacles • IH Market News • 09/18/2024 10:13:07 AM
- Microsoft Boosts Share Buyback, Raises Dividends by 10%, Intel Secures Chip Deal with Amazon • IH Market News • 09/17/2024 10:40:35 AM
- EMBRAER S.A. - MATERIAL FACT • PR Newswire (US) • 09/16/2024 01:24:00 PM
- Intel Secures $3.5 Billion Subsidy, Stellantis Backs EU Emissions Targets, BP and Apollo Reach $1 Billion Deal • IH Market News • 09/16/2024 10:03:27 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/13/2024 09:11:01 PM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Norfolk Southern CEO Fired, Ryanair Lowers Fare Forecast, 23andMe Considers Acquisition Proposals • IH Market News • 09/12/2024 10:02:29 AM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Boeing Pioneering Quantum Communications Technology with In-Space Test Satellite • PR Newswire (US) • 09/10/2024 02:15:00 PM
- Apple Loses EU Dispute; Google’s $2.7 Billion Fine Upheld; Oracle Shares Surge 9% • IH Market News • 09/10/2024 10:02:31 AM
- Dell, Palantir, and Erie Will Be Added to the S&P 500; Boeing Avoids Strike; Apple Event Takes Place Today • IH Market News • 09/09/2024 10:05:35 AM
- Boeing CFO Brian West to Speak at Morgan Stanley Laguna Conference September 13 • PR Newswire (US) • 09/06/2024 03:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:09:48 PM
- Qualcomm Develops Mixed Reality Glasses; Verizon to Boost Dividend, Eyes Acquisition; Samsonite Plans US Dual Listing • IH Market News • 09/05/2024 10:11:35 AM
- Nvidia Subpoenaed by DOJ, Athira Pharma Shares Plunge 71% After Study Fails, Zscaler Falls 15% Post-Earnings • IH Market News • 09/04/2024 09:50:25 AM
- U.S. Steel Shows Weakness, Boeing Under Pressure, Unity Software Should Show Initial Strength • IH Market News • 09/03/2024 01:12:17 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/29/2024 11:48:30 PM
- High Volatility Expected in Nvidia Report, Ambarella Soars 20%, Hertz Strengthens Board, Apple Cuts Jobs • IH Market News • 08/28/2024 09:50:36 AM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- Boeing: China Commercial Fleet to More than Double by 2043 for Growth and Modernization • PR Newswire (US) • 08/27/2024 03:30:00 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM