Boeing will launch its plan to raise more than $15 billion in capital on Monday, a source briefed on the matter told Reuters.
Reuters first reported on Oct. 16 that the planemaker was nearing a plan to raise about $15 billion with common stock and a mandatory convertible bond as it sought to shore up finances worsened by an ongoing crippling strike.
The new capital will come from a combination of the sale of shares and convertible preferred shares, the source added, saying the total amount raised could increase based on demand.
Boeing declined to comment Sunday.
Bloomberg News previously reported the expected timing of Monday’s capital raise.
Last week, machinists voted nearly two to one to reject Boeing’s latest offer seeking to end the strike that halted production of the 737 MAX.
The company said earlier this month in regulatory filings that it could raise up to $25 billion in equity and debt with its investment-grade credit rating at risk.
The aerospace giant has been dealing with increased regulatory scrutiny, production restrictions and a loss of customer trust since a door panel on a 737 MAX plane exploded in mid-air in early January.
Boeing has been burning cash all year and last week announced a new quarterly loss of $6 billion. Earlier this month, Boeing said it had secured a $10 billion credit deal with major lenders: Bank of America, Citibank, Goldman Sachs and JPMorgan.
Boeing said earlier this month it would cut 17,000 jobs – 10 percent of its global workforce – and delay the first deliveries of its 777X aircraft by a year.
The three major credit rating agencies (S&P, Moody’s and Fitch) have said they will lower Boeing’s ratings to junk if it raises new debt without retiring about $11 billion of debt due by Feb. 1, 2026.
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