Boeing looking to raise at least $10B via share sale – report

Boeing (NYSE:BA) is looking to raise at least $10B through a share sale to replenish cash reserves exhausted by an ongoing strike, Bloomberg reported on Tuesday, citing people familiar with the discussions.

Shares of the firm fell as much as 3.6% premarket in reaction. The company has lost around 40% in value this year, putting it on course for its worst annual return since the financial crisis in 2008.

The cash-strapped planemaker is working with advisers to explore its options, the people said, adding that an equity raise is unlikely to happen for at least a month, assuming the company can resolve the strike.

Boeing (BA) has roughly $58B of debt, making free cash flow a priority. Despite the heavy debt, ongoing labor strikes and operational delays, the company holds a $500B backlog of 5,490 planes.