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Boeing raising up to $35bn as costly strike enters second month

October 16, 2024
in Business
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Boeing raising up to bn as costly strike enters second month
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Boeing plans to raise up to $25bn in stock and debt offerings and said it has reached a deal with major banks to borrow as much much as $10bn.

“These are two prudent steps to support the company’s access to liquidity,” Boeing said in a statement.

The company’s shares rose by 2.2% after the announcements.

The moves to raise funding come less than a week after Boeing announced that it will cut its workforce by a tenth and push back deliveries of its 777X plane.

BBC News understands that the layoffs will, for now, not affect striking workers.

Major credit ratings agencies had previously warned that the strike could lead to downgrades, which would make it more expensive for the company to borrow money.

S&P Global estimates the strike is costing Boeing $1bn per month.

The walkout, at a company of strategic importance for the US economy, has become a source of concern for the Biden administration.

On Monday, acting US Labor Secretary, Julie Su, met representatives of the International Association of Machinists and Aerospace Workers union (IAM) and Boeing in Seattle.

Meanwhile, top Washington state Congressional Democrats have called on Boeing and the union to “redouble… efforts to reach a mutually beneficial resolution.”

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