Boeing files for $25 billion shelf ahead of possible securities, share sale

Investing.com -- Shares in Boeing Co (NYSE:BA ) pared back earlier gains in premarket US trading on Tuesday after the aerospace giant filed a registration statement with the US markets regulator that will allow it to raise up to $25 billion via a mixture of debt securities and other classes of stock.

In the filing, the embattled planemaker did not say when or exactly how much it will raise through the offering, although media reports have suggested that a share sale could come before the end of the year due to impending debt maturities.

Boeing has $11.5 billion in debt due to mature through Feb. 1, 2026. As of June 30, it had cash and cash equivalents of $10.89 billion.

"We may sell these securities on a continuous or delayed basis, directly, through agents, dealers or underwriters as designated from time to time, or through a combination of these methods," Boeing said in the filing.

Also on Tuesday, Boeing announced it had secured a $10 credit line from banks including JPMorgan Chase (NYSE:JPM ), Bank of America, Citigroup and Goldman Sachs as part of a bid to shore up its finances during an ongoing work stoppage by more than 30,000 of its employees in the US Pacific Northwest.

The strike, which is leading to heavy expenses and placing Boeing's bond rating in jeopardy of slipping into junk territory, comes as the company already faces deep scrutiny over its safety record following a mid-air door plug breach earlier in 2024.

Boeing has said it will roll out job cuts amounting to 10% of its global headcount. The firm will also delay the first deliveries of its 777X plane by a year and book $5 billion in losses in the third quarter.

Boeing Chief Executive Kelly Ortberg told employees on Friday that "tough decisions," such as structural changes, will be needed to bolster the performance of the wider group and ensure its long-term competitiveness.

(Reuters contributed reporting.)

Source: Investing.com