Boeing Company ( BA ) shares are trading higher on Tuesday. The company inked a $10 billion supplemental credit agreement with several big banks.

Bank of America, Citibank, Goldman Sachs, and JPMorgan are on board as joint lead arrangers and bookrunners.

Boeing ( BA ) plans to pay a 0.5% funding fee on each advance under the credit agreement and a 0.50%-1.00% duration fee on outstanding advances after 90 to 270 days.

Non-SOFR loans will accrue interest at the higher of Citibank's base rate, federal funds rate plus 0.50%, or Adjusted Term SOFR plus 1.00%, with an additional 0.375%-1.00%, based on Boeing's ( BA ) credit rating.

SOFR loans will bear interest at Adjusted Term SOFR plus 1.375%-2.00%. Commitments end in 120 days, with advances maturing in 364 days.

The credit agreement limits Boeing's ( BA ) debt to 60% of total capital. It also restricts liens to $250 million, and allows mergers only if Boeing ( BA ) is the surviving entity.

Apart from this, Boeing ( BA ) disclosed a mixed shelf offering of up to $25 billion, which includes Senior and Subordinated Debt Securities, Common Stock, and Preferred Stock.

This week, Boeing ( BA ) announced a 10% workforce reduction of approximately 17,000 jobs in an effort to stem financial losses.

Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ( ITA ) and Gabelli Commercial Aerospace and Defense ETF ( GCAD ) .

Price Action: BA shares are up 0.95% at $150.40 premarket at the last check Tuesday.

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