Boeing said on Tuesday it could raise as much as $25 billion in stock or debt over three years, a move to spice up liquidity because the troubled manufacturer faces a greater than month-long machinists' strike and problems in its aircraft programs is faced.
“This universal shelf registration provides the company with the flexibility to seek a variety of capital options as needed to support the company's balance sheet over a three-year period,” Boeing said in an announcement.
Boeing previously said in a separate filing that it had an agreement with a consortium of banks for a $10 billion loan agreement.
“The credit facility provides additional short-term access to liquidity as we navigate a challenging environment,” the corporate said in an announcement. “The company has not drawn on this facility or its existing credit revolver.”
Boeing shares have fallen nearly 43% this 12 months through Monday's close.
Boeing is attempting to strengthen its balance sheet because it faces warnings from rankings agencies that it could lose its investment-grade rating.
S&P Global Ratings, certainly one of the agencies that warned of a downgrade, estimated last week that the machinists' strike was costing Boeing greater than $1 billion a month. The two sides were at an impasse.
On Friday, Boeing's latest CEO Kelly Ortberg warned that the corporate plans to put off about 17,000 employees, or 10% of its global workforce, to chop costs.
“We need to have a clear view of the work that lies ahead and be realistic about how long it will take us to reach key milestones on the road to recovery,” he said, adding that Boeing is using its resources must deal with “areas that are of central importance to Who”. It’s us.”
The announcement got here amid preliminary financial results that showed increasing losses and charges of $5 billion across Boeing's defense and business aircraft divisions.
On Oct. 23, Ortberg will hold his first quarterly investor call since being named CEO of Boeing in August.
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