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Machinists rejected Boeing's ( BA ) latest offer to end strike

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New funding expected to come from sale of stock,

convertible

preferred shares

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New capital raise aimed at preserving credit rating,

boosting

liquidity

By David Shepardson

Oct 27 (Reuters) - Boeing ( BA ) is set to launch as early as

Monday its plan to raise more than $15 billion in capital, a

source briefed on the matter told Reuters.

Reuters first reported on Oct. 16 that the planemaker was

closing in on a plan to raise around $15 billion with common

shares and a mandatory convertible bond as it sought to bolster

finances worsened by a crippling ongoing strike.

The new capital is set to come from a mix of the sale of

stock and convertible preferred shares, the source added, saying

the total amount raised could rise based on demand.

Boeing ( BA ) declined to comment on Sunday.

Bloomberg News reported the expected timing of Monday's

capital raise earlier.

Last week, machinists voted nearly two to one to reject

Boeing's ( BA ) latest offer seeking to end the strike that has halted

737 MAX production.

The company said earlier this month in regulatory filings

that it could raise as much as $25 billion in stock and debt

with its investment-grade credit rating at risk.

The aerospace giant has been dealing with increased

regulatory scrutiny, production curbs and a loss of confidence

from customers since a door panel blew off a 737 MAX plane in

midair in early January.

Boeing ( BA ) has been burning through cash all year and last week

announced a new $6 billion quarterly loss. Earlier this month,

Boeing ( BA ) said it had secured a $10 billion credit agreement with

major lenders: Bank of America ( BAC ), Citibank, Goldman

Sachs ( GS ) and JPMorgan ( JPM ).

Boeing ( BA ) said earlier this month it would cut 17,000 jobs - 10%

of its global workforce - and delay first deliveries of its 777X

jet by a year.

The top three credit rating agencies - S&P, Moody's and

Fitch - have said they will cut Boeing's ( BA ) ratings to junk if it

raised new debt without retiring some $11 billion of debt

maturing through Feb. 1, 2026.