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Aerospace

Boeing tees up $35bn funding through share sale and loans

Boeing Co (NYSE:BA, ETR:BCO) has unveiled plans to raise US$35 billion (£26.8 billion) through share sales and a new loan as issues for the planemaker pile up.

Plans were laid out for a US$25 billion stock and debt offering in a regulatory file on Tuesday, which also showed Boeing had agreed to a ​​US$10 billion credit facility.

“These are two prudent steps to support the company's access to liquidity,” Boeing said, as a strike among thousands of workers in the US has added to a growing list of issues in recent months.

Boeing has grappled to restore its reputation after a mid-flight door panel blow-out on an Alaska Air-operated 737 MAX in January sparked scrutiny over the firm’s quality controls.

Production of the bestselling jet subsequently took a blow, while strike action by 33,000 workers in the Seattle area since mid-September has since magnified problems.

Aircraft output in the Washington state area had ground to a halt by late September due to the strike, dealing a US$3.7 billion hit to Boeing as of this week, according to analysts.

Some 17,000 job cuts were signalled over the weekend, equating to a tenth of Boeing’s staff, on the back of the issues.

Plans to raise funds come ahead of maturity on US$11.5 billion worth of Boeing’s debt in February, with the company’s cash having sat at US$10.89 billion as of June.

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