Airlines

Boeing plans early draw on more than $13 billion loan as market turbulence worsens

Key Points
  • Boeing is planning to draw on its more than $13 billion loan as market turbulence continues.
  • The company is doubly challenged by the fallout from two 737 Max crashes and now the coronavirus.
  • The virus has sent stocks tumbling, hitting the aviation industry especially hard.
A Boeing 737 MAX 9 is pictured outside the factory in Renton, Washington.
Stephen Brashear | Getty Images

Boeing is planning to draw down on a more than $13 billion loan it secured in January earlier than expected, a person familiar with the matter said Wednesday, as the spread of the coronavirus roils markets.

Boeing shares plunged close to 10% to lows not seen since mid-2017, shaving 155 points off the Dow Jones Industrial Average.

The funding was a delayed-draw loan, meaning Boeing could secure the funding but would tap into it later. The early drawdown on the loan was earlier reported by Bloomberg News.