Boeing Plans To Raise More Than $15B in Capital as Soon as Monday, Report Says

Boeing (BA) reportedly is planning to raise more than $15 billion in capital as soon as Monday, as the troubled plane maker seeks to shore up its finances.

According to Bloomberg, the deal is likely to include stock as well as debt that can be converted into shares, as the plane maker grapples with a crippling strike by its union machinists. Citing people familiar with the matter, the report said more money could be raised depending on demand and that that the negotiations were still ongoing.

The report said Boeing needs the funds to keep its investment-grade rating and fund its recovery from the strike. 

Boeing Earlier Announced Plans To Raise as Much as $25B

Earlier this month, the company wrote in a regulatory filing that it plans to raise as much as $25 billion through the sale of debt or stock. It also said that it had struck a deal with several big banks to receive a $10 billion credit line.

Boeing is struggling with a cash drain worsened by the strike, with the union last week rejecting a contract that would have given members a 35% pay hike over four years. The company has said it is preparing to lay off about 10% of its workforce, or 17,000 people, and has postponed the launch of its first 777x jetliner.

The company posted an enormous third-quarter loss last week and has said that the ongoing cash burn will continue into 2025.

Boeing stock has lost 40% of its value this year through Friday’s close, and was down a further 1% in premarket trading.