Boeing closes $15 billion financing through stock, hybrid bonds By Reuters
(Reuters) – Boeing (NYSE: ) is ending a plan to raise about $15 billion in common shares and a mandatory convertible bond as the planemaker tightens cash due to a devastating strike, four sources familiar with the matter told Reuters.
The company said in a regulatory filing on Tuesday that it could raise up to $25 billion in equity and debt at its investment grade risk. One of the sources warned that the $15 billion sale may not be enough for Boeing to fix its ongoing problems.
Boeing on Tuesday also announced a $10 billion debt settlement with major lenders – Bank of America, Citibank, Goldman Sachs and JPMorgan – as it tries to resolve production and control issues.
Boeing could not be reached for comment.
Four investor and banking sources said representatives of those lenders were inquiring about the prospect of a combined offering of new shares and a mandatory convertible bond – a hybrid bond that can convert to equity on or before a predetermined date.
About $10 billion in new shares are expected to be sold by the company and $5 billion in convertible bonds, the sources said.
One of the four sources said the deal was scheduled to be valued shortly after Boeing's Oct. 23 third-quarter earnings report. But one investor source said the company is trying to avoid a raise during the one-month strike that analysts estimate is worth tens of millions of dollars a day.
