Boeing said Tuesday that it could raise as much as $25 billion in shares or debt over three years, a move to extend liquidity because the troubled manufacturer faces a greater than monthlong machinist strike and problems throughout its aircraft programs.
“This universal shelf registration provides flexibility for the corporate to hunt quite a lot of capital options as needed to support the corporate’s balance sheet over a 3 12 months period,” Boeing said in an announcement.
Earlier, Boeing individually said in a filing that it has an agreement with a consortium of banks for a $10 billion credit agreement.
“The credit facility provides additional short term access to liquidity as we navigate through a difficult environment,” the corporate said in an announcement. “The corporate has not drawn on this facility or its existing credit revolver.”
Boeing shares are down nearly 43% this 12 months through Monday’s close.
Boeing is attempting to shore up its balance sheet because it faces warnings from credit rankings agencies that it could lose its investment-grade rating.
S&P Global Rankings, one in all the agencies that warned a few downgrade, last week estimated that the machinist strike is costing Boeing greater than $1 billion a month. The 2 sides have been at an impasse.
On Friday, Boeing’s recent 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 must be clear-eyed in regards to the work we face and realistic in regards to the time it can take to realize key milestones on the trail to recovery,” he said, adding that Boeing must focus resources on “areas which can be core to who we’re.”
The announcement got here alongside preliminary financial results, showing mounting losses and $5 billion in charges in Boeing’s defense and industrial airplane units.
On Oct. 23, Ortberg will hold his first quarterly investor call since becoming Boeing’s CEO in August.
