Boeing said on Tuesday it could raise up to $25 billion in stock or debt over three years, a move to boost liquidity as the troubled manufacturer faces a more than month-long machinists' strike and problems in its aircraft programs is faced.
“This universal shelf registration provides the company with the flexibility to seek a variety of capital options as needed to support the company's balance sheet over a three-year period,” Boeing said in a statement.
Boeing previously said in a separate filing that it had an agreement with a consortium of banks for a $10 billion loan agreement.
“The credit facility provides additional short-term access to liquidity as we navigate a challenging environment,” the company said in a statement. “The company has not drawn on this facility or its existing credit revolver.”
Boeing shares have fallen nearly 43% this year through Monday's close.
Boeing is trying to strengthen its balance sheet as it faces warnings from ratings agencies that it could lose its investment-grade rating.
S&P Global Ratings, one of the agencies that warned of a downgrade, estimated last week that the machinists' strike was costing Boeing more than $1 billion a month. The two sides were at an impasse.
On Friday, Boeing's new CEO Kelly Ortberg warned that the company plans to lay off about 17,000 employees, or 10% of its global workforce, to cut costs.
“We need to have a clear view of the work that lies ahead and be realistic about how long it will take us to reach key milestones on the road to recovery,” he said, adding that Boeing is using its resources must focus on “areas that are central to Who”. It’s us.”
The announcement came amid preliminary financial results that showed increasing losses and charges of $5 billion across Boeing's defense and commercial aircraft divisions.
On Oct. 23, Ortberg will hold his first quarterly investor call since being named CEO of Boeing in August.
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