Boeing's $15 Billion Financial Maneuver Amidst Turbulent Times

Boeing aims to raise $15 billion through common shares and a convertible bond to mitigate financial strain from a strike. Additionally, a $10 billion credit agreement has been secured. The company explores further financial restructuring amidst regulatory and production challenges, aiming to protect its investment grade rating.

Boeing is strategizing to raise approximately $15 billion through common stock and a mandatory convertible bond, as it navigates financial challenges exacerbated by a crippling strike. Insider sources reveal that the timing of this financial move remains uncertain, with potential to raise as much as $25 billion, despite the company's investment-grade credit rating risks.

The aerospace giant might also engage in a structured finance transaction to raise another $5 billion, potentially securitizing a portion of a subsidiary's revenue. Though Boeing did not comment on these plans, they unfold amidst increased regulatory scrutiny and customer confidence challenges, following a midair incident involving a 737 MAX.

Boeing, experiencing a cash burn throughout the year, announced its capital market endeavors alongside a $10 billion credit facility from major banks. Analysts speculate on the timing of the equity raise, while investor discussions suggest growing interest in a hybrid bond offering that could convert into equity, seen as more shareholder-friendly.

(With inputs from agencies.)