Boeing (BA.US) is expected to raise up to $25 billion, sending its stock up over 1.7%
AInvestTuesday, Oct 15, 2024 12:20 pm ET
1min read
BA --

Boeing (BA.US) said on Tuesday it may raise up to $25bn through a share or debt offering to ease the pressure on its finances from years of heavy losses, and said it had reached a $10bn supplemental credit agreement with several US banks. Shares rose 1.76% to $151.615 after the announcement.

Regulatory filings show the company may solidify its finances through raising funds and new borrowing agreements with lenders over the next three years.

Boeing has lost more than $25bn since the start of 2019, and its finances have come under fresh pressure as its main production workers strike into a second month, affecting its cash flow. The company has burned through more than $1bn in cash, and had total cash and securities of $10.3bn as of September.

Last Friday, new CEO Kelly Ortberg said the company would cut about 10% of its workforce, or about 17,000 jobs, and delay the launch of a new version of its 777 wide-body jet. Production of the company's current 777 models and its best-selling 737 Max jets has been halted due to the strike.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.