Boeing is seeking to raise up to $25bn (£19bn) in an attempt to shore up its finances as the planemaker struggles with production delays amid a strike by 33,000 workers and ongoing safety concerns.
A regulatory filing by the company on Tuesday said it intended to raise the money through a stock and debt offering, which would provide flexibility for Boeing to seek options to support its balance sheet over a three-year period.
It also entered into a separate $10bn credit agreement with a consortium of banks, which it said would provide short-term access to liquidity as it navigated through a “challenging environment”.
Production at the planemaker has been hobbled by the strike that began a month ago, which is estimated to have cost the company more than $1bn, according to Reuters.
Last week, the company withdrew its offer of a 30% pay rise over four years for striking staff after talks with unions broke down, and later in the week it announced plans to shed 17,000 jobs – about 10% of its global workforce – to cut costs.
The strikes add to a tumultuous year for Boeing, which began in January when a door panel blew out in mid-air from one of its 737 Max 9s shortly after it took off from Portland, Oregon. The Federal Aviation Administration (FAA) then enforced a cap on the production of the Max jets.
In July, Boeing agreed to plead guilty to a US criminal fraud charge stemming from the crashes of two 737 Max jetliners in 2018 and 2019, which killed 346 people, and agreed to pay a fine of almost $250m (£191m).
It was not clear when or how much the company expected to raise through the offering announced on Tuesday but analysts predicted it would be completed before the end of the year.
Boeing is also facing $11.5bn of debt maturing through February 2026, while it has committed to issuing $4.7bn of its shares to acquire Spirit AeroSystems, as well as take on its debt. The deal to buy back the parts supplier, which it sold off nearly 20 years ago, was part of its plan to boost safety on production lines.
In a statement with the filing to the US Securities and Exchange Commission, Boeing said: “This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company’s balance sheet over a three-year period.”
The separate $10bn credit facility was struck with banks including Citibank and Goldman Sachs but the manufacturer confirmed it had yet to draw any money from it. It said: “These are two prudent steps to support the company’s access to liquidity.”
