Boeing To Raise Up To $25 Billion, Gets $10B Credit Line

Key Takeaways

• Struggling plane maker Boeing plans to sell as much as $25 billion in debt or stock, and received a $10 billion bank credit line.
• Boeing has been in financial turmoil as it faced problems with aircraft production and is being hit by a strike by machinists that's now a month old.
• Shares of Boeing have lost more than 40% year-to-date.

Boeing (BA) shares edged higher Tuesday morning after the struggling plane maker reported that it has taken steps to secure cash.

The company wrote in a regulatory filing that it plans to raise as much as $25 billion through the sale of debt or stock. In addition, Boeing said that it had struck a deal with several big banks to receive a $10 billion credit line.

Boeing Recently Announced Layoffs After Costly Strike

The moves come days after the company announced significant cost-cutting measures, including laying off 17,000 workers, as it reels from the fallout from production issues and a four-week strike by its 33,000 union machinists.

Several media outlets reported Boeing explained that the moves "are two prudent steps to support the company's access to liquidity" as it navigates through a "challenging environment." Investopedia has reached out to the company for comment.

Shares of Boeing have lost more than 40% year-to-date.