Boeing to borrow $10 billion and raise an additional $25 billion

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and Boeing is looking to borrow and raise billions.

Transcript

00:00I'm Conway Gittens reporting from the New York Stock Exchange, here's what we're watching

00:03on the street today.

00:04One day after the Dow closed above 43,000 for the first time ever, stocks are struggling

00:10to hold gains.

00:11Techs are a drag, but financials are mostly higher.

00:14Bank of America, the country's second largest bank, topped profit estimates due to strength

00:18in its trading unit.

00:20Goldman Sachs beat forecasts on strong numbers from investment banking.

00:24Cost controls and a slight revenue bump helped Citigroup exceed expectations.

00:29Turning to other headlines, Boeing is looking to raise up to $25 billion to bolster its

00:35finances as it grapples with a crippling workers' strike now in its second month.

00:40The airplane maker said it could raise the money through stock or bond offerings spread

00:44across three years.

00:45Quote, this universal shelf registration provides flexibility for the company to seek a variety

00:50of capital options as needed to support the company's balance sheet over a three-year

00:56period.

00:57The cash infusion would come on top of a new $10 billion line of credit it has received

01:02from a collection of banks.

01:04Boeing is under pressure to shore up its finances as the walkout by 30,000 machinists grounds

01:09business to a halt.

01:11S&P Global Ratings warns Boeing's credit rating is in jeopardy as it loses an estimated $1

01:17billion a month.

01:19There's also some belt tightening going on.

01:21Boeing is planning to lay off 17,000 workers and further delay production on its latest

01:26wide-body plane in order to survive the strike.

01:30Boeing's troubles, however, began before the strike.

01:33Two deadly plane crashes and a door flying off midair delayed production put its safety

01:38record under scrutiny and caused the company to start burning through cash.

01:44That'll do it for your daily briefing from the New York Stock Exchange.

01:46I'm Conway Gittins with The Street.

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