10/16/2024

Boeing Lines up $35 Billion in Funds as the Strike Hammers its Finances

S&P, Fitch say offerings could help preserve credit rating

Boeing set out to shore up its sagging finances on Tuesday, announcing plans to raise up to $25 billion through stock and debt offerings and a $10 billion credit agreement with major lenders amid a production and regulatory crisis.

It was not clear when and how much the plane-maker would eventually raise, but analysts estimate Boeing needs somewhere between $10 billion and $15 billion to maintain its credit ratings, which are now just one notch above junk.

Boeing has lurched from crisis to crisis this year, kicking off on Jan. 5 when a door panel blew off a 737 MAX jet in mid-air. Since then, its CEO departed, its production has been slowed as regulators investigate its safety culture, and in September, 33,000 union workers went on strike.

Please select this link to read the complete article from Reuters.