Boeing to Raise Over $15 Billion in Capital Amid Financial Challenges.

Boeing is preparing to launch a significant capital-raising effort, aiming to secure more than $15 billion as early as Monday. The plan involves a combination of common shares and convertible preferred shares, with the potential for the total amount to increase based on demand. This move comes as Boeing faces multiple challenges, including an ongoing strike that has halted 737 MAX production, increased regulatory scrutiny, and a loss of customer confidence following a door panel incident on a 737 MAX plane in January.

The company has been experiencing financial strain, reporting a $6 billion quarterly loss last week and burning through cash throughout the year. To address these issues, Boeing has already secured a $10 billion credit agreement with major lenders and announced plans to cut 17,000 jobs, representing 10% of its global workforce. The company has also delayed the first deliveries of its 777X jet by a year.

Boeing's investment-grade credit rating is at risk, with major credit rating agencies warning of potential downgrades to junk status if the company raises new debt without retiring approximately $11 billion of debt maturing through February 1, 2026. This capital-raising effort is crucial for Boeing as it seeks to strengthen its financial position and navigate through its current challenges.

Report by Reuters