Boeing Co (NYSE:BA, ETR:BCO) plans to raise around $15 billion through a combination of stock sales and mandatory convertible bonds to strengthen its finances, according to sources cited by the Reuters news agency.
The aerospace giant, facing regulatory issues, production setbacks, and a loss of customer confidence, is also considering a structured finance deal to raise an additional $5 billion.
Boeing has been burning cash due to a strike, pushing the company to secure a $10 billion credit line from major lenders. While the exact timing of the capital raise is unclear, Boeing may need to act soon to protect its investment-grade credit rating.
Rating agencies have warned that further debt without reducing existing liabilities could lead to a downgrade. Boeing shares have risen slightly following the funding announcement.