Boeing to set loan at $13b after lenders step up

Boeing set the size for its new loan at $13b after saying last week that it had received enough commitments for a $12b facility, according to people familiar with the matter. The cash provides the US planemaker with financial flexibility as the fallout of the 737 Max crisis takes a toll on the company’s finances and once-solid credit rating. Boeing originally sought a $10b loan led by Citigroup that grew in size as more banks asked to join the deal. The company received $14b of commitments as of last week. The cash will help Boeing work through the grounding of the Max and production freeze. Boeing now faces a cash burn in the billions as it deals with lost revenue and supporting both suppliers and airline customers during the disruption. The Max crisis has hit Boeing’s credit ratings, which are now split between the lowest and second-lowest tiers of investment grade. Boeing’s debt costs will increase if one more ratings company downgrades it fully into the triple-B space.<br/>