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The funds raised will be used to address general corporate needs and high cash-burn issues. Over the past four years, Spirit has used approximately $1.9 billion in cash. Its free cash flow, which stood at $723 million in 2019, is projected to recover to $242 million by 2025 from an estimated negative of $305 million in 2023. However, this recovery is dependent on Boeing increasing plane shipments and Spirit addressing delays in aircraft parts delivery.
In support of Spirit, Boeing restructured its financial obligations on October 18, leading to a 23% surge in Spirit’s stock. Despite this support from Boeing, the announcement of the stock and debt sale occurred while S&P 500 and Dow Jones futures remained flat, further underscoring Spirit’s financial challenges.
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