Boeing plans to launch a fundraising effort of more than $15 billion starting Monday, the source said
Written by David Shepardson
(Reuters) – Boeing (NYSE: ) will unveil on Monday its plan to raise more than $15 billion, a source briefed on the matter told Reuters.
Reuters first reported on October 16 that the planemaker was closing a plan to raise about $15 billion in common shares and a convertible bond as it seeks to shore up funds that have been strained by an ongoing, damaging strike.
The new capital is planned to come from the sale of stock and convertible preferred shares, the source added, saying the total amount raised could increase based on demand.
Boeing declined to comment Sunday.
Bloomberg News reported the expected timing of Monday's capital hike earlier.
Last week, engineers voted nearly two to one to reject Boeing's latest bid to end a strike that has halted production of the 737 MAX.
The company said earlier this month in a regulatory filing that it could raise up to $25 billion in equity and debt through its venture capital rating.
The aerospace giant has faced increased scrutiny of controls, production methods and a loss of customer confidence since the department's panel grounded the 737 MAX plane in early January.
Boeing has been burning through cash all year and last week announced a new quarterly loss of $6 billion. Earlier this month, Boeing said it had reached a $10 billion debt agreement with major lenders: Bank of America, Citibank, Goldman Sachs and JPMorgan.
Boeing said earlier this month it would cut 17,000 jobs – 10% of its global workforce – and delay the first delivery of its 777X jet for a year.
The three top credit rating agencies – S&P, Moody's (NYSE: ) and Fitch – said they would cut Boeing's ratings to junk if it raised new debt without canceling $11 billion in debt maturing through Feb. 1, 2026.
