Boeing (NYSE:BA) stock moved upward in price Tuesday, after reporting that it could raise as much as $25 billion in shares or debt over three years, a move to increase liquidity as the troubled manufacturer faces a more than month-long machinist strike and problems throughout its aircraft programs.
“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.
Earlier, Boeing separately said in a filing that it has an agreement with a consortium of banks for a $10 billion credit agreement.
“The credit facility provides additional short-term access to liquidity as we navigate through a challenging environment,” the company said in a statement. “The company has not drawn on this facility or its existing credit revolver.”
Boeing is trying to shore up its balance sheet as it faces warnings from credit ratings agencies that it could lose its investment grade rating.
S&P Global Ratings, one of the agencies that warned about a downgrade, last week estimated that the machinist strike is costing Boeing more than $1 billion a month.
Meanwhile, this is the start of a fifth week in which workers have been on strike at the plane maker. The company said it would be issuing layoff notices to thousands in November.
BA shares gained 71 cents to $149.70.
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