Boeing weighs raising at least $10 billion selling stock, Bloomberg News reports

(Reuters) – Boeing (NYSE:BA) is considering raising at least $10 billion by selling new stock, Bloomberg News reported on Tuesday, citing people familiar with the discussions.

The planemaker is working with advisers to explore its options, the report said, adding that raising equity is not likely to happen for at least a month.

Boeing did not immediately respond to Reuters’ request for comment. Reuters has not independently verified the report.

The planemaker has been under pressure from slumping production of its strongest-selling 737 MAX jet, after a January incident when a door panel blew off a new model mid-air.

Its finances were further strained after roughly 30,000 Boeing workers represented by the International Association of Machinists and Aerospace Workers in the Seattle and Portland areas walked off the job in September.

Boeing is carrying a heavy debt load of about $60 billion and posted operating cash flow losses of more than $7 billion for the first half of 2024, according to data compiled by LSEG.

The U.S. planemaker had previously signaled it would consider issuing equity as it deals with ongoing safety problems exposed by the January blowout and looming debt maturities.

Industry experts had said Boeing would likely need to raise cash by the end of 2024, with some analysts and investors expecting the company to raise between $10 billion and $12 billion.

Boeing has just under $4.6 billion in bonds and loans coming due by end of 2025, according to data compiled by LSEG.

Shares of the planemaker were down 1.3% in premarket trading.