Boeing Considering To Raise Capital Worth $15 Billion As Planemaker Tries To Navigate Strikes: Report

The strike includes over 33,000 machinists and has resulted in a delay in the company’s production of its famous 737 MAX aircraft, along with other widebody crafts like 767 and 777

Last week, the machinists voted nearly two to one to again reject the company’s latest offer to close the strike

Source : Boeing

Boeing is reportedly planning to raise capital worth over $15 billion, media reports said. The manufacturer is looking into launch the initiative as early as Monday.

Citing sources in the know, Reuters reported that this new capital will come from a combination of sale of stock and convertible preferred shares. The overall amount raised in the round could also increase on the basis of demand.

Notably, Boeing has suffered some blows recently as its machinists continue to strike for more than a month. The strike includes over 33,000 workers of the company and has resulted in a delay in the company’s production of its famous 737 MAX aircraft, along with other widebody crafts like 767 and 777. 

Last week, the machinists voted nearly two to one to again reject the company’s latest offer to close the strike. Earlier this month, Boeing in its exchange filings said that it could raise up to $25 billion in stock and debt. 

Additionally, last week, media reports emerged statting that the company is also planning to divest certain sections of its space business. A report by Wall Street Journal stated that Boeing is considering offloading the Starliner spacecraft and divisions providing support to the International Space Station.

Earlier, CEO Kelly Ortberg in a call with analysts addressed that the company needs to undertake fewer things but do them more efficiently. The executive said it will take some time for the company to make changes as its quarterly losses soared to hit $6 billion. 

“This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again,” Ortberg noted. The executive also called for a ‘fundamental culture change’ at the manufacturer and urged for an improvement in performance in the defense business, and 737 MAX and 777 programs.