Boeing's $25 Billion Financial Maneuver Amid Crisis

Amid a strike and looming debt maturities, Boeing plans to raise up to $25 billion through stock and debt offerings. The move aims to stabilize its finances strained by reduced production of its 737 MAX jets. Boeing also secured a $10 billion credit agreement, trading down 0.3% premarket.

Boeing has taken steps to mitigate financial strains by filing for up to $25 billion through stock and debt offerings, as stated in documents submitted to the U.S. markets regulator on Tuesday. This move aligns with the company's need to navigate a crippling strike and impending debt obligations.

The aerospace giant is grappling with reduced finances due to a slowdown in production of its 737 MAX jets following a door panel blowout and ongoing union worker strikes. While the specifics of the stock offering remain unclear, analysts anticipate a fundraising effort before year-end to address looming debt maturities.

Boeing's stock experienced a 0.3% decline in premarket trading. Despite this, the company has not tapped into its new $10 billion credit line or other credit resources. Boeing emphasizes that these financial measures enhance liquidity as it faces a challenging business environment, while cash reserves remain just under $11 billion.

(With inputs from agencies.)