Company eyes new credit and shares to survive as strikes and delays weigh the company down
Boeing is taking drastic steps to secure its future, seeking to raise at least $10 billion by selling new shares and securing a fresh credit line.
The iconic manufacturer has been struggling this year with major setbacks, including a 737 MAX mishap in January and a machinist strike that halted production.
In filings made Tuesday, Boeing revealed plans to issue up to $25 billion in shares or debt over the next three years while locking in a $10 billion credit deal.
Sources say the company will aim to raise around $10 billion from its upcoming stock offering.
Boeing called the moves “prudent steps” to ensure access to liquidity as it faces growing financial challenges.
Its stock, which began the year at $250, rose 2% to about $152 after the announcement, as analysts expressed relief over Boeing’s efforts to stabilize its cash flow.
The machinist strike, which started last month, has intensified the company’s cash problems, with Boeing burning through $1 billion per month before the walkout.
Boeing hasn’t posted a profit since 2018, and the coming months will be critical as it battles to recover.
