Boeing Co. plans to launch a capital raise as early as Monday, according to people familiar with the matter, in a bid that would help the struggling aircraft maker boost its liquidity, according to a detailed Bloomberg report.

The Bloomberg report further states that the airline is expected to raise more than $15 billion through this fundraising, one of the sources said, adding that the amount could further increase depending on demand and need. Boeing advisers have selected potential investors for this offering, according to people familiar with the matter, who requested anonymity because the information is not yet public.

Transaction including shares and debt

The transaction is expected to include shares as well as debt that can be converted into shares, the sources said. On October 23, the company received approval from the U.S. Securities and Exchange Commission to sell up to $25 billion in stock and debt, a move that could help Boeing avoid damage to its credit rating. is not degraded.

Deliberations are ongoing and details of the offer, such as timing, could still change, the sources said. A Boeing representative declined to comment on the matter. A $15 billion stock sale would be the largest stock offering since SoftBank Group Corporation sold part of its stake in T-Mobile US Inc. in 2020, according to data compiled by Bloomberg.

Boeing needs capital infusion to maintain investment grade rating

Boeing needs a capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on track to use about $4 billion in cash during the fourth quarter, which would bring its free cash outflows to about $14 billion for the year.

Additionally, the Bloomberg report explains that the aircraft manufacturer plans to continue spending cash throughout the first half of next year by restarting its aircraft factories, including the assembly lines for its airliner 737 Max, a cash cow.

Boeing factory workers voted last week to reject the company’s latest contract offer, which included a 35 percent pay increase spread over four years. The company plans to reduce its workforce by about 10 percent, with potential reductions affecting executives, managers and employees, CEO Kelly Ortberg said in an Oct. 11 memo to employees.

Boeing was considering raising at least $10 billion by selling new shares and was working with advisors to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein estimated Oct. 23 that the company would seek to raise between $18 billion and $20 billion.

The company said on Oct. 15 that it had established a separate new credit agreement worth $10 billion, giving it “additional near-term access to liquidity as we navigate a challenging environment.” .

The Arlington, Virginia-based company reported its third-quarter results on Oct. 23, with revenue of $17.8 billion below expectations and its two largest businesses both reporting widening losses. Boeing shares have fallen more than 40 percent this year.

Boeing is considering options to streamline its broad portfolio, with Ortberg beginning a review of its business that it hopes to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News reported. While Reuters reported earlier this month that Boeing plans to raise around $15 billion in shares and convertible bonds.

Global market participants and investors will closely monitor these developments and make informed investment decisions on the steps Boeing is taking to combat the current challenging economic environment for the company.