Boeing Lines Up $35 Billion In New Funding As Strike Hammers Planemaker

Boeing has announced plans to shore up its finances by raising up to $25 billion through stock and debt offerings and securing a $10 billion credit agreement with major lenders.

Boeing has been struggling to keep aloft amid a barrage of turbulence, of late. I Photo: The Boeing Company Facebook

The announcement comes amid a production and regulatory crisis, Abhijith Ganapavaram and Utkarsh Shetti reported for Reuters.

The planemaker did not specify when or how much it would raise through the offerings, but analysts estimate that Boeing needs to secure between $10 billion and $15 billion to maintain its credit ratings, which are now just one notch above junk status.

Boeing has been grappling with a slump in production of its best-selling 737 MAX jet following a mid-air door panel blowout earlier this year, as well as a strike by thousands of union workers since Sept. 13.

Boeing said it had not yet drawn on the new $10 billion credit facility arranged with Bank of America, Citibank, Goldman Sachs, and JPMorgan, nor on its existing revolving credit facility.

“These are prudent steps to support the company's liquidity,” Boeing stated, adding that the credit agreement would provide short-term access to liquidity as the company navigates a "challenging environment."

Boeing added that the shelf registration, allowing it to sell stock and debt, would give the company options to support its balance sheet over a three-year period.