Boeing: up to $25 billion to be raised

(CercleFinance.com) - Boeing announced on Tuesday its intention to raise up to $25 billion through bond issues and equity offerings, with a view to strengthening a cash position that has steadily deteriorated in recent months.


The aircraft manufacturer - which is not yet detailing the terms of the forthcoming operations - simply states that it plans to place senior debt, subordinated debt, common stock and preferred stock on the market over a period of up to three years.

The Arlington (Virginia)-based group also claims to have signed a credit agreement for a $10 billion loan with BofA, Citibank, Goldman Sachs and JPMorgan.

Following these announcements, Boeing shares rose by more than 0.5% on Tuesday morning on the New York Stock Exchange, the prospect of dilution for existing shareholders being more than offset by the promise of a strengthening of the group's cash position, which was limited to $10.5 billion at the end of September.

The fact that the financing horizon extends over three years is a positive element, as it will give the company time and a number of options," commented BofA analysts.

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