Boeing could raise $10bn via share sales, Bloomberg reports

Crystal City, Virginia — Boeing is considering raising at least $10bn by selling new stock, Bloomberg News reported on Tuesday, citing people familiar with the discussions.

The plane maker is working with advisers to explore its options, the report said, adding that raising equity is unlikely for at least a month.

Boeing, which didn’t immediately respond to request for comment,  has been under pressure from slumping production of its strongest-selling 737 MAX jet, after a January incident when a door panel blew off a new model in midair.

Its finances were further strained after about 30,000 workers represented by the International Association of Machinists and Aerospace Workers in the Seattle and Portland areas went on strike in September.

Boeing has debt of about $60bn and posted operating cash flow losses of more than $7bn for the first half of 2024, according to data compiled by LSEG.

The US plane maker had previously signalled it would consider issuing equity as it deals with continuing safety problems exposed by the January incident and looming debt maturities.

Industry experts had said Boeing was likely to need to raise cash by the end of 2024, and some analysts and investors expect the company to raise between $10bn and $12bn.

Boeing has just under $4.6bn in bonds and loans due by end of 2025, according to data compiled by LSEG.

its shares were down 1.3% in premarket trading.

Reuters