Boeing plans to raise up to $35B to shore up finances as strike continues

Core Viewpoint - Boeing plans to raise up to $25 billion through stock and debt offerings while entering a $10 billion credit agreement to address financial challenges due to an ongoing strike and production issues [1][2]. Financial Strategy - The funds raised will be used for general corporate purposes, with Boeing having cash and cash equivalents of $10.89 billion as of June 30 [4]. - The company is looking to solidify its finances after production of the 737 Max was capped by regulators earlier this year [1]. Labor Issues - A strike by the International Association of Machinists union, involving 33,000 workers, began on September 13, following the rejection of a deal that included a 25% wage increase and a $3,000 signing bonus [4][5]. - The strike has led to a temporary pause in production for several aircraft models, costing the company over $1 billion per month [1][5]. Credit Ratings and Market Position - Analysts estimate that Boeing needs to raise between $10 billion and $15 billion to maintain its credit ratings, which are currently just one notch above junk status [7]. - Boeing's CFO indicated the company is constantly evaluating its capital structure and liquidity to satisfy debt maturities over the next 18 months [5].