Boeing Considers Issuing New Shares to Raise at Least $10 Billion Amidst Strike and Debt Concerns

TapTechNews October 2nd news, Bloomberg reported that Boeing is considering raising at least 10 billion US dollars (TapTechNews note: currently about 70.249 billion yuan) by issuing new shares to replenish the cash reserves that have been further reduced due to the continuous strike. Bloomberg believes that Boeing's credit rating is about to be downgraded to junk level.

Insiders said that the company is working with advisors to explore various details, but due to the strike issue, it is unlikely that Boeing will conduct equity financing within at least one month. Allegedly, Boeing has not yet made a final decision on the time and amount of the share offering, and may ultimately choose not to take action.

According to the data of the London Stock Exchange, Boeing currently has a huge debt burden of about 60 billion US dollars, and the total amount of bonds and loans due by the end of 2025 is close to 4.6 billion US dollars. In the first half of 2024, Boeing's operating cash flow loss exceeded 7 billion US dollars. Boeing had previously said that it was considering issuing new shares to address the continuous safety issues exposed by the accident in January and the upcoming debt issues, and some analysts and investors expect the company to raise 10 to 12 billion US dollars.