Boeing Expands Financing Options: Debt and Equity as Key Strategy

The American aircraft manufacturer Boeing has filed a registration with the U.S. Securities and Exchange Commission that allows the company to generate up to $25 billion through the issuance of various debt and equity securities. It remains unclear when and to what extent Boeing will utilize these options, but experts and investors expect a capital raising before the end of the year, in response to upcoming debt maturities. Another major step to secure liquidity is Boeing's recently completed $10 billion credit agreement with a consortium of banks. As of June 30, the company had cash and cash equivalents totaling $10.89 billion. Chief Financial Officer Brian West emphasized the strategic review of the capital structure and liquidity levels at a Morgan Stanley event last month. The goal is to ensure the ability to service upcoming debts over the next 18 months while simultaneously bolstering confidence in the company's creditworthiness. Boeing has debts amounting to $11.5 billion due by February 1, 2026, and plans to issue $4.7 billion in shares for the acquisition of Spirit AeroSystems and to assume its debts. Additional reports in October suggested that Boeing is considering raising further billions through the sale of shares and share-like securities. In September, Boeing delivered 33 aircraft, a decline from the 40 units in August.