Boeing Plans $25 Billion Stock and Debt Offering

Boeing has announced plans to raise up to $25 billion through stock and debt offerings, alongside securing a new $10 billion credit agreement, as it faces significant financial strain from an ongoing machinist strike and production issues. The company expects to incur a cash outflow of approximately $10 billion in 2024 due to the strike, with analysts estimating losses could exceed $1 billion per month. Boeing's workforce will be reduced by 17,000 jobs, or 10%, to mitigate costs during this period of turmoil. The strike, involving 33,000 workers, has already halted aircraft production in Washington state and led to a $3.7 billion financial hit. Boeing's current cash reserves are reported at $10.9 billion, which raises concerns as $11.5 billion in debt matures in February. The company aims to stabilize its finances amid these challenges and has stated that the new credit facility provides vital liquidity as it navigates this difficult environment.