Oct 16 (Reuters) - Boeing ( BA ) is closing in on a plan
to raise around $15 billion with common shares and a mandatory
convertible bond as the jet maker bolsters finances worsened by
a crippling strike, four sources familiar with the matter told
Reuters.
The company on Tuesday said in regulatory filings that it
could raise as much as $25 billion in stock and debt with its
investment-grade credit rating at risk. One of the sources
cautioned that a $15 billion sale may not be enough for Boeing ( BA )
to fix its ongoing crises.
Boeing ( BA ) on Tuesday also announced a $10 billion credit
agreement with major lenders - Bank of America ( BAC ), Citibank
, Goldman Sachs ( GS ) and JPMorgan ( JPM ) - as it tries
to work out of a production and regulatory crisis.
Boeing ( BA ) was not immediately available for comment.
Four investor and banking sources said representatives from
those lenders were inquiring about appetite for a combined
offering of new shares and a mandatory convertible bond - a
hybrid bond that could convert into equity on or before a
predetermined date.
Roughly $10 billion in new shares are being contemplated to
be sold by the company along with nearly $5 billion in mandatory
convertible bonds, the sources said.
One of the four sources said the deal was scheduled to be
priced shortly after Boeing's ( BA ) Oct. 23 third-quarter earnings
report. But another investor source said the company was trying
to avoid a raise during the middle of the month-old strike which
analysts estimate is costing tens of millions of dollars per
day.