Boeing's Bold $15 Billion Capital Dawn Amidst Strike Shadows

Boeing plans to raise more than $15 billion in capital as it faces financial challenges due to an ongoing strike. The funds will be generated through common shares and convertible preferred shares. Regulatory and production issues continue to plague the company, risking its credit rating.

Boeing is poised to launch a substantial $15 billion capital raise as early as Monday, according to a source familiar with the situation. Reuters initially reported on October 16 that the aviation titan was finalizing plans to raise this hefty sum to fortify finances weakened by a persistent strike.

The much-needed funds are rumored to be derived from a combination of common stock sales and mandatory convertible bonds, with the total potentially surpassing $15 billion based on investor demand, insiders reveal. However, Boeing has refrained from commenting on these developments.

The critical move comes amidst intense regulatory scrutiny, production setbacks, and a diminished customer trust following technical issues with the 737 MAX aircraft. Boeing is concurrently managing severe financial pressures, including a recent $6 billion quarterly loss and significant workforce reductions.

(With inputs from agencies.)