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Boeing’s push to preserve cash and tap huge credit line spooks investors
... Boeing Co. investors headed for the hills Wednesday after the company was said to be planning to use a credit line to the last penny and took steps to preserve its cash amid the novel coronavirus pandemic. ...
...Earlier Wednesday, a Bloomberg report that cited people familiar with the matter said the plane maker was planning to draw down the full amount of a $13.825 billion loan as early as Friday. Also Wednesday, a Boeing memo to employees said the company was imposing a hiring freeze and limiting travel and overtime in a bid to preserve cash, according to The Wall Street Journal. ...
https://www.marketwatch.com/story/boeing...=home-page
Dazu passend:
Boeing To Drawdown Full $13.8 Billion Revolver, Hinting At Bank Lending Freeze
...Why is Boeing taking this unprecedented step: after all, the cash is already committed and is far safer if held on bank balance sheets instead of Boeing's? According to Bloomberg, the full drawdown takes place as Boeing grapples with worldwide travel disruptions from the coronavirus, and "plans to draw the rest of the loan as a precaution due to market turmoil." That however doesn't explain why Boeing needs the cash on its balance sheet instead of its lender banks'. The answer - especially for those who recall what happened in 2008 all too well - is simple: Boeing is worried that banks will pull their committed funding, which in turn means that Boeing is either now worried that a 2008-style financial crisis is imminent, or that the company's own prospects are about to implode, forcing banks to breach their delayed draw credit facility document terms ...
https://www.zerohedge.com/markets/boeing...ing-freeze
Boeing’s push to preserve cash and tap huge credit line spooks investors
... Boeing Co. investors headed for the hills Wednesday after the company was said to be planning to use a credit line to the last penny and took steps to preserve its cash amid the novel coronavirus pandemic. ...
...Earlier Wednesday, a Bloomberg report that cited people familiar with the matter said the plane maker was planning to draw down the full amount of a $13.825 billion loan as early as Friday. Also Wednesday, a Boeing memo to employees said the company was imposing a hiring freeze and limiting travel and overtime in a bid to preserve cash, according to The Wall Street Journal. ...
https://www.marketwatch.com/story/boeing...=home-page
Dazu passend:
Boeing To Drawdown Full $13.8 Billion Revolver, Hinting At Bank Lending Freeze
...Why is Boeing taking this unprecedented step: after all, the cash is already committed and is far safer if held on bank balance sheets instead of Boeing's? According to Bloomberg, the full drawdown takes place as Boeing grapples with worldwide travel disruptions from the coronavirus, and "plans to draw the rest of the loan as a precaution due to market turmoil." That however doesn't explain why Boeing needs the cash on its balance sheet instead of its lender banks'. The answer - especially for those who recall what happened in 2008 all too well - is simple: Boeing is worried that banks will pull their committed funding, which in turn means that Boeing is either now worried that a 2008-style financial crisis is imminent, or that the company's own prospects are about to implode, forcing banks to breach their delayed draw credit facility document terms ...
https://www.zerohedge.com/markets/boeing...ing-freeze
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