Striking Boeing workers and their supporters picket outside the Boeing manufacturing plant in Renton, Washington, on September 16, 2024.
Kim Ye-hyun | AFP | Getty Images
boeing company On Tuesday it said it could raise up to $25 billion in equity or debt over three years, a move to boost liquidity as the struggling manufacturer faces more than Month-long machinists strike and issues throughout the aircraft project.
“This general shelf registration provides the company with the flexibility to pursue a variety of capital options as needed to support the company’s balance sheet for three years,” Boeing said in a statement.
Previously, Boeing said separately in a filing that it had reached a credit agreement worth $10 billion with a consortium of banks.
“The credit facility provides us with additional short-term liquidity as we navigate the challenging environment,” the company said in a statement. “The company has not yet drawn on the facility or its existing credit revolving facility.”
As of Monday’s close, Boeing’s stock price has fallen nearly 43% this year.
Boeing Co. is trying to shore up its balance sheet as it faces warnings from credit rating agencies that it could lose its investment-grade rating.
S&P Global Ratings, one of the agencies to issue downgrade warnings, estimated last week that the machinists’ strike was costing Boeing more than $1 billion a month. The two sides have been in a deadlock.
On Friday, new Boeing CEO Kelly Ortberg warned that the company Planned layoffs About 17,000 employees (10% of its global workforce) to cut costs.
“We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the road to recovery,” he said, adding that Boeing needed to focus its resources on “who is critical.” important areas”. we are. “
The announcement came alongside preliminary financial results showing mounting losses at Boeing’s defense and commercial aircraft divisions, with charges of $5 billion.
On October 23, Ortberg will hold his first quarterly investor call since taking over as Boeing CEO in August.
