Boeing to raise up to $25bn
October 15, 2024
Boeing has revealed plans to raise up to $25 billion through the sale of debt or shares, as part of a major effort to bolster its financial position.
The announcement, made in a regulatory filing, underscores the company’s need for additional capital amid ongoing challenges in its production lines and delays with key aircraft models.
Alongside this fundraising plan, Boeing has secured a $10 billion credit line from a consortium of major banks. The move will provide the aerospace giant with additional liquidity, allowing it to manage immediate cash flow needs and buffer against further disruptions in the global aviation market.
The decision to raise capital comes as Boeing continues to grapple with supply chain issues and the costs associated with its striking workers, which has impacted its recovery from a turbulent few years. The pandemic and manufacturing delays have hit Boeing hard, driving the need for urgent financial manoeuvres.
By tapping both debt and equity markets, Boeing aims to stabilise its operations and support future growth, including investment in new technologies.
However, issuing new shares could dilute existing shareholders’ stakes, while taking on more debt would increase the company’s financial obligations, adding pressure to an already leveraged balance sheet.
Boeing’s management will be looking to reassure investors that these moves will put the company on firmer footing, as it continues to navigate a challenging landscape in the aerospace industry.
