Boeing is seeking to raise up to $25bn (£19bn) in a bid to shore up its finances as the planemaker struggles amid production delays. 33,000 workers on strike and continued safety concerns.
The company's regulatory filing on Tuesday said it intends to raise money through an equity and debt offering, which would provide flexibility. Boeing will seek options to shore up its balance sheet over a three-year period.
It also signed a separate $10bn loan deal with a consortium of banks, which it said would provide short-term access to liquidity as it navigates a “challenging environment”.
Production at the aircraft maker has been disrupted by a strike that began a month ago and is estimated to cost the company more than $1 billion, according to Reuters.
Last week, the company withdrew its 30% pay rise offer for more than four years of striking workers after talks with unions broke down, and later in the week it announced plans to cut 17,000 jobs – about 10% of its global workforce – to cut costs.
The strikes add to a tumultuous year for Boeing, which began in January when a door panel exploded mid-air from one of its 737 Max 9s shortly after takeoff from Portland, Oregon. The Federal Aviation Administration (FAA) then imposed a limit on the production of Max jets.
In July, Boeing pleaded guilty to US criminal fraud charges over the crashes of two 737 Max jetliners in 2018 and 2019 that killed 346 people, and agreed to pay nearly $250m (£191m) in fines.
It was unclear when or how much the company expected to raise through the offering announced Tuesday, but analysts predicted it would be completed by the end of the year.
Boeing also has $11.5bn of debt maturing in February 2026, while it has pledged to issue $4.7bn in equity. Get Spirit Aero Systems and take its loan. The deal to buy back the parts supplier, which it sold nearly 20 years ago, is part of its plan to increase safety on production lines.
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In a filing with the US Securities and Exchange Commission, Boeing said: “This global shelf registration gives the company the flexibility to seek the various capital options needed to support the company's balance sheet over a three-year period.”
A $10 billion credit facility has been arranged with banks including Citibank and Goldman Sachs, but the manufacturer confirmed it has yet to draw any money from it. It said: “These are two sensible steps that will support the company's access to liquidity.”
