Boeing CEO Kelly Ortberg relocated to Seattle, where 33,000 Boeing employees took to the picket line. (Credit: Derrick Louie, Clarity Northwest Photography, Laura Halliday, Realogics Sothebys International Realty, KCPQ)
Aerospace giant Boeing The company said in a regulatory filing Tuesday that it plans to raise up to $25 billion in stock and bond issuances while facing ongoing strikes that will impact production in addition to future debt payments. The company also announced that it has signed a $10 billion credit agreement.
The company is looking to shore up its finances after regulators restricted production of its best-selling 737 Max jet earlier this year after one of its planes had a door panel blown off mid-air and the cabin depressurized. It is said that
Strike by thousands Machinists who are members of a labor union It began on September 13th and resulted in the temporary suspension of production of the 737 Max, 767, 777, P-8, KC-46A tanker, and E-7 Wedgetail. Estimates released before Boeing announced that it would cut 17,000 jobs, or 10% of its global workforce, estimated that the strikes cost the company more than $1 billion a month.
“These are two prudent steps to support the company's access to liquidity,” Boeing said in a statement to FOX Business. “This universal shelf registration provides the company with the flexibility to explore various capital options as needed to support its three-year balance sheet.”
Boeing strike: Which aircraft are affected?
Boeing announced plans to raise up to $35 billion as the machinists union strike continues. (Photographer: David Ryder/Bloomberg via Getty Images / Getty Images)
” credit system Provides additional short-term access when navigating difficult environments. “The company is not utilizing this facility or its existing credit revolver,” Boeing added.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 148.99 | -2.03 |
-1.34% |
Boeing plans to use the funds for general corporate purposes, according to the filing. The company's cash and cash equivalents were $10.89 billion as of June 30.
The strike by the International Association of Machinists union and 33,000 workers in Washington and Oregon began on September 13 after the union rejected a deal that would have included a $3,000 contract bonus and a 25% increase in prevailing wages. It started on the day. commitment to Build Boeing's next commercial jet Located in the Seattle area.
Boeing cuts 10% of its workforce, halts most 767 production amid union turmoil
Production of Boeing's best-selling 737 Max plane was paused earlier this year and remains subject to regulatory caps. (GEOFFROY VAN DER HASSELT/AFP via Getty Images/Getty Images)
The two sides remain at an impasse, and negotiations are becoming increasingly heated as the strike drags on. Acting Secretary of Labor Julie Su He met with Boeing and the union in Seattle on Monday to try to break the stalemate.
Last month, Boeing Chief Financial Officer Brian West said at a Morgan Stanley conference that the company is “securing its debt maturities over the next 18 months while maintaining confidence in its investment-grade credit rating.” “We are constantly evaluating our capital structure and liquidity levels to ensure we are able to meet these requirements.” . ”
Boeing offers 'final' offer of 30% pay increase to striking workers
Boeing and the machinists' union continue to negotiate as the strike enters its fifth week. (Jordan Gale/AFP via Getty Images/Getty Images)
Boeing has $11.5 billion in debt due February 1, 2026, and has pledged to issue $4.7 billion in stock. Acquired Spirit AeroSystems and assume that debt.
The timing and amount of Boeing's stock offering remain unclear, but analysts believe Boeing needs to raise between $10 billion and $15 billion to maintain its credit rating, which is currently just one notch above junk status. We estimate that we need to do so.
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FOX Business' Aislinn Murphy and Reuters contributed to this report.
