CHICAGO (dpa-AFX) - Spirit AeroSystems Holdings, Inc. (SPR), Tuesday announced an Advance Payments Agreement by which Boeing Co. (BA) will pay an advance of up to a total of $350 million to produce Boeing products at the rates required by Boeing.
The payments will help Spirit's high levels of inventory and lower operational cash flows, decrease in expected deliveries to Boeing and higher factory costs to maintain rate readiness, and lingering effects brought on by the recent strike by Boeing employees.
Under the agreement, the company will repay 25 percent of the advances on April 30, 2026, June 30, 2026, September 30, 2026, and December 31, 2026.
Currently, Spirit's stock is trading at $31.34, up 1.06 percent on the New York Stock Exchange.
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