Boeing Co (NYSE:BA, ETR:BCO) is seeking to raise $10 billion through a debt offering to bolster the aerospace giant’s finances, according to sources cited by Reuters.
It follows a $4 billion cash burn in the first quarter and a near junk rating on unsecured notes by ratings agencies Moody’s and Standard & Poor’s.
Boeing is facing mounting legal and financial pressures.
The aircraft manufacturer, one half of a global duopoly with France’s Airbus, paid Alaska Air Group $160 million in compensation for losses incurred from a mid-air door panel incident in January. This payment covers the initial lost profits for the year's first quarter.
The compensation follows January's grounding of several 737 MAX 9 jets operated by US airlines, including Alaska, after a door panel detached during a flight.
US regulators identified a missing bolt issue on the affected Alaska jet, leading to a criminal investigation and pending lawsuits from passengers.
Boeing’s shares responded positively to the rumored debt round, with the stock adding 3.25% on Monday.
However, amid the various crises surrounding its aircraft, the stock remains over 30% lower year to date.