Striking Boeing workers and their supporters picket outside a Boeing Co. manufacturing facility. in Renton, Washington, on September 16, 2024.
Yehyun Kim | AFP | Getty Images
Boeing said on Tuesday it could raise up to $25 billion in equity or debt over three years, a move to boost capital as the struggling manufacturer grapples with a machinist strike and more than a month of problems across its aircraft systems.
“This general shelf registration gives the company the flexibility to pursue as many financing options as needed to support the company’s balance sheet over a three-year period,” Boeing said in a statement.
Earlier, Boeing said in a separate filing that it had reached an agreement with the bank on a $10 billion debt settlement.
“The credit facility provides additional short-term access to liquidity as we go through a difficult situation,” the company said in a statement. “The company has not drawn on this institution or the existing credit revolver.”
Boeing shares are down about 43% this year through Monday’s close.
Boeing is trying to strengthen 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 that warned of the downgrade, last week estimated that the strike of the machinists is costing Boeing more than one billion a month. The two sides have been at odds.
On Friday, new Boeing CEO Kelly Ortberg warned that the company plans to lay off about 17,000 workers, or 10% of its global workforce, to cut costs.
“We need to be clear about the task at hand and be realistic about the time it will take to reach critical points on the road to recovery,” he said, adding that Boeing needs to focus resources on “core areas of recovery.” we can.”
The announcement came alongside preliminary financial results, which showed rising losses and $5 billion in costs for Boeing’s defense and commercial units.
On October 23, Ortberg will hold his first quarterly investor call since becoming CEO of Boeing in August.