Boeing plans to raise over $15 billion as early as Monday – report

Boeing (NYSE:BA) is preparing a capital raise of more than $15 billion as early as Monday, October 28, 2024, Bloomberg reported, citing sources familiar with the matter. The capital raise will likely involve a combination of equity shares and mandatory convertible debt.

The company recently secured authorization from the U.S. Securities and Exchange Commission (SEC) to issue up to $25 billion in equity and debt, a strategic move intended to bolster its credit rating and avoid a downgrade to junk.

The details and timing of the offering could still change, the report said. Boeing (BA) advisors have been engaging with potential investors, although details remain confidential.

This capital raise comes on the heels of significant operational challenges amid a crippling strike ongoing since September 13.

Boeing (BA) missed recent Q3 estimates with a backlog of $511 billion, including over 5,400 commercial airplanes.

Year-to-date, Boeing (BA) stock has declined about 40% and gets a Seeking Alpha quant rating of Hold, with the lowest factor grades given to profitability.