Boeing considers raising at least $10bn selling new stock - report
Boeing Co.
$154.90
07:19 01/10/24
Boeing is reportedly considering raising at least $10bn by selling new stock as it looks to replenish cash reserves depleted further by an ongoing strike.
Dow Jones I.A.
42,182.55
04:30 15/10/20
Bloomberg cited people familiar with the discussions as saying that Boeing is working with advisers to explore its options.
It was understood that raising equity isn’t likely to happen for at least a month, assuming the plane maker can resolve the strike, because Boeing wants a firm grasp of the financial toll from the walkout by 33,000 workers.
A spokesman for Boeing declined to comment to Bloomberg, whose sources said that no final decision on timing and the amount has been made, and that Boeing could end up deciding against the move.
Boeing is under pressure to shore up its finances and hold onto its investment-grade credit rating. The company is one step away from dropping into speculative territory, which would further drive up the cost to service its $58bn debt load.
The situation has been exacerbated by the strike now in its third week that has shut down output of Boeing’s single-aisle airliner.