Skift Take

Travel companies are moving quickly to shore up finances, as the uncertainty grows over how long the coronavirus crisis will last.

U.S. companies rushed to bulk up their cash reserves amid market turmoil fueled by the global coronavirus outbreak and a plunge in oil prices.

The following is a list of companies that have announced plans to take on additional loans and extend credit lines:

  • Boeing Co is planning to draw down the rest of a $13.8 billion loan it agreed last month, a source told Reuters on Wednesday, as the coronavirus outbreak adds to pressure on the U.S. planemaker due to the grounding of its 737 MAX jets.
  • U.S. hotel operator Hilton Worldwide Holdings Inc said in a regulatory filing on Wednesday it was planning to draw down the remaining available amount under a $1.75 billion revolving credit line as it grapples with weak global travel.
  • Online marketplace eBay Inc announced in a regulatory filing on Wednesday an unsecured $2 billion five-year revolving credit facility.
  • Walt Disney Co said on Wednesday it entered into a $5.25 billion 364-day credit agreement. In addition, it also announced a new $3 billion five-year credit agreement in a regulatory filing
  • Royal Caribbean Cruises Ltd said on Tuesday it increased its credit capacity by $550 million to boost liquidity.
  • Chicago-based United Airlines Holdings Inc said on Tuesday it had raised $2 billion in new capital to bring liquidity to $8 billion.
  • Oreo maker Mondelez International Inc on Monday announced a $2.5 billion credit facility, in addition to a similar agreement worth $1.5 billion agreed less than two weeks ago.
  • Private equity firm Blackstone Group Inc is asking companies it controls to draw down their credit lines to avoid liquidity crunch, Bloomberg reported on Wednesday, citing people familiar with the matter.
  • Casino resorts operator Wynn Resorts Ltd is planning to draw down a portion of its $850 million revolving credit line as it grapples with the coronavirus pandemic’s impact on its revenues, Bloomberg reported on Wednesday, citing people with knowledge of the matter.

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Arun Koyyur)

This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected].


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Photo credit: Passengers use self check-in kiosks at a United terminal. Bloomberg

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