Boeing is pursuing up to $25bn in an effort to strengthen its finances as the aerospace giant grapples with production delays due to labor disputes and persistent safety issues.
A regulatory announcement by the firm on Tuesday revealed plans for a stock and debt offering, aiming to provide Boeing flexibility over three years in bolstering its balance sheet amidst these challenges.
Additionally, it entered into another $10bn (£7.63bn) credit agreement with several bank partners which offers short-term liquidity as the company maneuvers through a difficult situation.
This comes at a time when production has been significantly affected by strikes that have lasted over a month ago, resulting in estimated losses exceeding $1 billion according to Reuters reports.
Last week saw Boeing withdraw its initial offer of a substantial pay rise for striking employees after negotiations with labor unions fell through; subsequently they announced job cuts – around ten percent globally - as an effort to reduce expenditures further into this challenging time period.
Recent troubles compound ongoing issues, which date back in January when part of a Boeing 737 Max aircraft detached mid-flight from one departed at Portland, Oregon leading the Federal Aviation Administration (FAA) to place production limitations for these specific jets due to safety concerns.
In July this year, after an admission and guilty plea related criminal fraud charge linked with two crashes of 737 Max in previous years causing loss of life totaling at least hundreds; Boeing agreed on a hefty fine near the mark of $250 million (£191m).
While unclear details remain around when and how much will be raised through this offering, analysts speculate completion by year's end.
Boeing is also dealing with an upcoming maturity of its existing debt worth $11.5 billion in February next year while simultaneously planning to issue shares totaling about $4.7bn for Spirit AeroSystem acquisition and associated liabilities – a move originally intended as part strategy towards improved safety on production lines after selling off nearly two decades ago now being revisited amid current crisis situation at company's head office; stated in their regulatory filing to the US Securities & Exchange Commission: “This universal shelf registration gives flexibility for us seeking various capital options as necessary over a three-year time frame.”
Firm confirmed this credit facility agreement with key financial institutions such as Citibank and Goldman Sachs, though so far no funds have been drawn from it; described these actions in their statement: “These prudent steps ensure our continued access to liquidity."
Read next
Netflix Expects Profit Surge with Millions Joining Subscriber Base Over Three Month Period
After implementing measures against password sharing and introducing commercis into the streaming experience, along with substantial funding for live TV events, Netflix announced it anticipates to double profits this quarter following an influx of over 5 million new subscribers during summer.
Popular shows like The Perfect Couple and Emily in
British Pound Declines Amid First Drop in Inflation Below 2% Target Since 2thyear-end - Business Updates Live
UK's price growth has dipped below its set goal after nearly four years and five months, as indicated by recent statistics from the Office for National Statistics (ONS). Inflation measured through consumer prices index stands at a yearly 1.7% in September—a reduction from August’s rate
BMW CEO Predicts European Emissions Regulation Will Reduce Combustion Engine Automobile Market Growth
The EU's plans for phasing out traditional internal combustion engines by 2035 have sparked concern among industry leaders as European car manufacturers face intensified competition from China in the electric vehicle sector.
In a statement at the Paris motor show, Oliver Zipse of BMW warned that this deadline