Boeing plans to raise $15 billion as labor strike impacts finances
Boeing plans to raise $15 billion through stock and convertible bond sales amid a month-long labor strike. This strategy aims to address financial challenges while its credit rating remains precarious, just above junk status. The fundraising includes a $10 billion equity sale and $5 billion in convertible bonds. Previously, Boeing considered raising up to $25 billion alongside a $10 billion loan, as it faces significant cash burn from ongoing quality control issues. The strike is costing Boeing millions daily and complicating its recovery efforts. Credit agencies express caution, noting that the company’s financial stability is under scrutiny due to its labor situation and high cash usage.