(Changes source, adds share fall)
March 11 (Reuters) – Boeing Co is planning a full drawdown of an existing $13.8 billion loan as early as Friday, as the U.S. based plane-maker struggles with worldwide travel disruptions from the coronavirus outbreak, a source told Reuters.
The company is taking the step because of overall market volatility and not due to the changing of the return to service date of its 737 MAX aircraft, the source said.
Boeing’s shares fell nearly 9% to $211.11 after an initial report on the loan drawdown from Bloomberg News.
U.S. companies have been rushing to borrow more money and boost their cash coffers this week, as market turmoil fueled by a plunge in oil prices and the global coronavirus outbreak raises the prospect of an economic downturn.
Media reported last month that Boeing had raised a total of $13.825 billion in a fund raising round from lenders including Bank of China and PNC. (Reporting by David Shephardson in Washington, Rachit Vats in Bengaluru; editing by Patrick Graham)
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