In a significant move to bolster production, Spirit AeroSystems has secured a $107 million credit line from Airbus. This agreement, outlined in a Second Amended and Restated Memorandum of Agreement, signifies a crucial step in the ongoing collaboration between the two aerospace giants. The non-interest-bearing line of credit will function as advance payments, directly supporting Spirit’s production activities for various Airbus programs. This financial support ensures the timely delivery of essential components from Spirit to Airbus, maintaining the smooth flow of their respective operations.
The agreement outlines a clear repayment structure. Upon the completion of specific transactions detailed in a term sheet dated June 30, 2024, the responsibility for the utilized funds, including repayment, will transition to Airbus or one of its affiliates. This signifies a strong commitment from Airbus to the success of the partnership and a testament to the importance of Spirit’s contribution to their programs. However, if these transactions fail to materialize before April 1, 2026, the borrowed amount will be repaid directly to Airbus.
This strategic financial arrangement underscores the importance of collaboration in the aerospace industry. It allows Spirit AeroSystems to maintain its production momentum, ensuring continued deliveries of crucial components to Airbus. This, in turn, benefits both companies, enabling them to fulfill their commitments to the global aviation sector. The agreement is a positive indicator of the strong partnership between Spirit AeroSystems and Airbus, paving the way for continued success in the years to come.
