Boeing's $15 Billion Capital Raise

By David Shepardson

(Reuters) – Boeing (NYSE:BA) is preparing to launch a plan to raise over $15 billion in capital as early as Monday, according to a source briefed on the matter.

On October 16, Reuters reported that Boeing was finalizing a plan to raise around $15 billion through common shares and a mandatory convertible bond to strengthen its finances amid an ongoing strike.

The new capital will likely come from the sale of stock and convertible preferred shares, with the total raised potentially increasing depending on demand.

Boeing declined to provide comments on Sunday. A Bloomberg News report also mentioned the anticipated timing for the capital raise.

Recently, machinists voted nearly two to one to reject Boeing's latest offer aimed at ending the strike, which has paused 737 MAX production.

Boeing indicated earlier this month in regulatory filings that it could raise as much as $25 billion through stock and debt, while its investment-grade credit rating remains at risk.

The company has faced mounting regulatory scrutiny, production restrictions, and declining customer confidence following an incident where a door panel detached from a 737 MAX midair in January.

Throughout the year, Boeing has been experiencing significant cash burn, recently announcing a $6 billion quarterly loss and securing a $10 billion credit agreement with major lenders, including Bank of America, Citibank, Goldman Sachs, and JPMorgan.

Additionally, Boeing revealed plans to cut 17,000 jobs—10% of its global workforce—and delay the first deliveries of its 777X jet by one year.

The leading credit rating agencies—S&P, Moody's (NYSE:MCO), and Fitch—have warned that they will downgrade Boeing to junk status if the company takes on new debt without addressing $11 billion of debt maturing by February 1, 2026.