TEXAS – Boeing Co. is planning to launch a capital raise as early as Oct 28, according to people familiar with the matter, in an offering that would help the beleaguered airplane maker boost its liquidity.
The company is set to raise more than US$15 billion (S$19.9 billion) from the fundraising, one of the people said, adding that the amount could still rise depending on demand.
Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public.
The transaction is likely to include shares as well as debt that can be converted into equity, the people said.
The company on Oct 23 received clearance from the US Securities and Exchange Commission to sell as much as US$25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk.
Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment.
A US$15 billion share sale would be the largest equity offering since SoftBank Group Corp. sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show.
Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week.
The company is on pace to use around US$4 billion in cash during the fourth quarter, which would bring its free-cash outflow to around US$14 billion for the year.
The plane maker expects to continue burning cash through the first half of next year as it restarts its airplane factories, including the assembly lines for its cash-cow 737 Max jetliner.
Boeing factory workers voted last