{"id":359086,"date":"2024-10-16T09:26:24","date_gmt":"2024-10-16T13:26:24","guid":{"rendered":"https:\/\/skiesmag.com\/?post_type=news&p=359086"},"modified":"2024-10-16T09:26:25","modified_gmt":"2024-10-16T13:26:25","slug":"boeing-signals-it-may-raise-up-to-25-billion-to-shore-up-finances","status":"publish","type":"news","link":"https:\/\/skiesmag.com\/news\/boeing-signals-it-may-raise-up-to-25-billion-to-shore-up-finances\/","title":{"rendered":"Boeing\u00a0signals it may raise up to $25 billion to shore up finances"},"content":{"rendered":"\n

SEATTLE (AP) \u2014 Boeing signaled Tuesday that it could raise up to $25 billion in new stock or debt to shore up its balance sheet after years of heavy losses<\/a>.<\/p>\n\n\n\n

The company said in back-to-back regulatory filings that it could raise the cash over the next three years. It also entered into a new borrowing agreement with lenders to provide short-term protection against a cash crunch. It also entered into a new $10 billion credit agreement with lenders to provide short-term protection against a cash crunch.<\/p>\n\n\n\n

Boeing hasn’t earned an annual profit since 2018, losing more than $25 billion since, after two 737 Max jets crashed, killing 346 people. Its finances are under new pressure as a strike by workers<\/a> who build most of its airline jets factory goes into its second month. The strike is cutting into cash, which Boeing receives when it delivers new planes to buyers.<\/p>\n\n\n\n

The strike is also getting the attention of the Biden administration. Julie Su, the acting labor secretary, visited Seattle and met with the union and Boeing on Monday, according to the International Association of Machinists and Aerospace Workers.<\/p>\n\n\n\n

Boeing workers packed a union hall for raucous rally Tuesday that was intended to show solidarity among strikers.<\/p>\n\n\n\n

\u201cWe could talk about solidarity, but when you see it, it definitely lifts you up,\u201d said Sergio Lombardo, who has worked at Boeing for 14 years.<\/p>\n\n\n\n

Jeff Cook, a quality inspector with 28 years at Boeing, said the rally sends a message to Boeing’s corporate officials “that we’re not just going to lie down. We have been lying down for them for 16 years, and it\u2019s just not going to fly anymore.\u201d<\/p>\n\n\n\n

Boeing has burned through more than $1 billion in cash and ended September with $10.3 billion in cash and securities.<\/p>\n\n\n\n

On Friday, new CEO Kelly Ortberg said Boeing will cut about 10% of its workforce<\/a> \u2014 around 17,000 jobs \u2014 and pushed back the launch of a new model of its large 777 airliner.<\/p>\n\n\n\n

Production of current models of the 777 and Boeing\u2019s best-selling plane, the 737 Max, have been halted by the strike.<\/p>\n\n\n\n

Boeing’s securities filings Tuesday are called shelf registrations, which indicate that a company has the ability to raise funds without committing to doing anything.<\/p>\n\n\n\n

The company also reported that to provide near-term liquidity, it entered into a new supplemental credit agreement with units of Bank of America, Citibank, Goldman Sachs and JPMorgan Chase.<\/p>\n\n\n\n

Fitch Ratings said the announcements increase Boeing’s financial flexibility and ease near-term liquidity concerns. Management\u2019s ability to tap capital sources other than debt \u201cwill help alleviate downgrade risks\u201d by improving the prospects for paying off debt that matures in 2025 and 2026, Fitch said.<\/p>\n\n\n\n

Standard & Poor’s said last week it was considering cutting Boeing\u2019s credit rating.<\/p>\n\n\n\n

Shares of The\u00a0Boeing\u00a0Co, based in Arlington, Virginia, rose two percent on Tuesday.<\/p>\n","protected":false},"excerpt":{"rendered":"

The company signaled it could raise up to $25 billion in new stock or debt to shore up its balance sheet after years of\u00a0heavy losses.<\/p>\n","protected":false},"author":299,"featured_media":354975,"comment_status":"open","ping_status":"closed","template":"","categories":[99318],"tags":[],"class_list":["post-359086","news","type-news","status-publish","has-post-thumbnail","hentry","category-oem","entry"],"acf":[],"jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/news\/359086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/users\/299"}],"replies":[{"embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/comments?post=359086"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/media\/354975"}],"wp:attachment":[{"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/media?parent=359086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/categories?post=359086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skiesmag.com\/wp-json\/wp\/v2\/tags?post=359086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}