The Boeing Co. (BA) - Get Report said late Thursday it had launched a $25 billion bond offering with maturities from 3 to 40 years expected to close on May 4 and that as a result it won’t seek further funding from capital markets or the federal government for now.
Boeing has been hammered by the 14-month grounding of its flagship 737 Max airplane and by the collapse of aviation travel due to the Covid-19 pandemic.
Shares have lost more than 50% of their value since the start of the year.
“We’re pleased with the response to our bond offering today, which is one of several steps we’re taking to keep liquidity flowing through our business and the 17,000 companies in our industry’s supply chain,” the company said in a statement.
Earlier this week, Boeing reported a wider-than-expected first-quarter loss, and said its cash burn rate hit $4.7 billion in the period. It said at the time it was "actively exploring all of the available options" for additional liquidity.
The company told workers this week it will likely have to cut at least 10% of its workforce as it copes with the falloff in demand.
"The aviation industry will take years to return to the levels of traffic we saw just a few months ago,' CEO David Calhoun said in a letter to employees this week.
Boeing shares fell $1.22, or 0.9%, to $139.80 in after-hours trading.
The broader markets ended lower Thursday, with the S&P 500 off 0.9%, the Dow off 1.2% and the Nasdaq Composite down 0.3%.