(Reuters) -Boeing mentioned on Tuesday it has entered a credit score settlement price $10 billion with a consortium of banks, because the U.S. planemaker readies financing sources amid a crippling strike and upcoming debt maturities.
The corporate’s shares rose 2% earlier than the bell.
The newest improvement indicators the planemaker is diversifying its financing choices because it has $11.5 billion of debt maturing by Feb. 1, 2026.
Earlier this yr, Boeing (NYSE:) dedicated to issuing $4.7 billion of its shares to amass Spirit AeroSystems (NYSE:) and assume its debt.
Boeing’s money woes have worsened since roughly 33,000 of its staff represented by the Machinists union walked off their jobs in September, halting manufacturing of its best-selling 737 MAX plane.
The strike is costing the corporate greater than $1 billion per thirty days, based on one estimate that was launched earlier than Boeing introduced it is going to lower 17,000 jobs or 10% of its international workforce.
The planemaker was already reeling attributable to a regulator-imposed cap on manufacturing of its MAX jets after a mid-air cabin-panel blowout in January.
Boeing has posted working money movement losses of greater than $7 billion for the primary half of 2024 and had about $60 billion in debt, together with the $10 billion it raised earlier this yr.
The developments come at a time when Boeing can be seeking to protect its investment-grade credit standing amid the looming risk of a downgrade into junk territory, which would be the first for the planemaker.
