Boeing to Raise as Much as $25 Billion to Avert Cash Crunch

Boeing Co. took a step toward raising as much as $25 billion, funds that would give the troubled planemaker the financial resources to withstand a paralyzing strike and work its way through a series of operational setbacks.

The company filed with regulators on Tuesday to sell any combination of bonds and shares, known as a shelf registration. Boeing is looking to shore up its balance sheet and boost access to cash, as it tries to avoid getting cut to junk status by bond graders and facing much higher borrowing costs.

“This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company’s balance sheet over a three year period,” Boeing said in a statement. 

The company said that it has a separate new credit agreement in place for $10 billion, giving it “additional short term access to liquidity as we navigate through a challenging environment.”

The added firepower will help Boeing improve its bargaining position with striking workers, who have halted production at key Seattle-area facilities for weeks. Union members are seeking higher wages and a reinstatement of pensions, and talks broke down last week again as both sides dug in on their demands.

The company is also working through quality issues on its top-selling 737 Max jets, under the supervision of regulators who have capped production. The long-delayed 777X program was pushed back further last week as well, to 2026. 

Bloomberg reported this month that Boeing was considering a capital increase of at least $10 billion, citing people familiar with the discussions. Should Boeing proceed, a sale of that magnitude would stand to be the biggest by a public company since Saudi Arabian Oil Co.’s $12.3 billion sale in June.