Boeing has secured a $10bn supplemental credit agreement from a consortium of lenders, including BofA Securities, Citibank, Goldman Sachs, and JP Morgan Chase, to address ongoing operational challenges worsened by recent labour disputes.
In conjunction with this credit agreement, Boeing plans to raise up to $25 bn through various securities offerings, including debt and equity instruments, to bolster its financial position.
The new credit line adds to Boeing’s existing untapped revolving credit, raising its net debt to $45 bn amid warnings from credit-rating agencies about potential downgrades if capital is not raised.
These financial maneuvers follow Boeing’s announcement of significant layoffs (17,000 workers, roughly 10pc of its workforce) and delays in delivering the B777-9 and B777-8F, with the company projecting third-quarter revenues of $17.8 bn and operating cash flow of $1.3bn.
