Boeing (BA) Plans to Raise $25 Billion Amid Financial Struggles | | StockXpo

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Boeing (BA) Plans to Raise $25 Billion Amid Financial Struggles

Published: Tuesday, October 15, 2024 · 11:50 PM  |  Updated: Tuesday, October 15, 2024 · 11:50 PM

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Boeing (BA, Financial) announced that it might issue new stock or debt to raise up to $25 billion to alleviate financial pressures from significant losses over recent years. Additionally, the company has secured a $10 billion supplementary credit agreement with several American banks. Following this announcement, Boeing’s stock increased by 1.76%, reaching $151.615.

Regulatory documents indicate that Boeing may seek to stabilize its finances by raising funds and securing new loan agreements within the next three years. Since early 2019, Boeing has incurred losses exceeding $25 billion. The financial strain has intensified as the company faces a worker strike at its primary aircraft production facilities, now in its second month, affecting cash flow.

Boeing has already depleted over $1 billion in cash, with $10.3 billion remaining in cash and securities as of September. Last week, Boeing’s newly appointed CEO, Kelly Ortberg, announced a 10% workforce reduction, equivalent to about 17,000 jobs, and a delay in launching a new 777 large jet model. The ongoing strike has forced a halt in the production of Boeing’s current 777 model and its bestselling 737 Max jet.

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