Boeing Plans $25 Billion Capital Raise

Boeing is attempting to raise up to $25 billion through a combination of stock and debt offerings, alongside a new $10 billion credit agreement, to improve its financial stability amid ongoing strikes and production setbacks. The company is facing significant challenges, including a production slump of its 737 MAX jet and potential credit downgrades from rating agencies, which are one notch above junk status. Analysts from Wells Fargo and Bank of America suggest that while this capital raise may temporarily address liquidity concerns, Boeing's significant debt load remains a concern for share performance. The strikes are costing Boeing over £750 million monthly, leading to plans to cut 10% of its workforce, equating to around 17,000 jobs. Despite some positive investor sentiment regarding the capital raise, skepticism remains about the company's long-term financial health and ability to attract investors. Boeing's struggles follow a series of safety issues and regulatory challenges that have plagued the company in recent years.