Boeing plans over US$15 billion capital raise as soon as Monday

BOEING is planning to launch a capital hike as early as Monday (Oct 28), according to sources 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 from the fundraising, one of the sources 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 sources familiar with the matter, asking not to be identified as the information is not public.

The transaction is likely to include shares as well as debt that can be converted into equity, the sources said.

The company on Wednesday 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 sources said. A Boeing representative declined to comment. BLOOMBERG