Boeing Co.
What Happened: The capital will be raised through a mix of common stock and convertible preferred shares, according to a Reuters report citing people familiar with the matter. The total amount could be adjusted based on market demand.
The company has been grappling with issues, including a machinists' strike that has disrupted 737 MAX production and regulatory scrutiny following a midair incident involving a 737 MAX aircraft.
Recently, Boeing reported a $6 billion quarterly loss and secured a $10 billion credit agreement with major banks such as Bank of America
Boeing declined to comment on the matter in response to Benzinga's queries.
Why It Matters: Boeing's financial challenges have prompted the company to consider selling off major assets to remain competitive in a tough market. The company is exploring divestitures of non-core or underperforming units, including a small defense unit that produces surveillance equipment for the U.S. military.
Despite these hurdles, a Goldman Sachs analyst remains optimistic about Boeing's long-term prospects. The analyst reaffirmed a Buy rating on Boeing's stock, citing the company's robust aircraft demand, planned capital raise, and new leadership focused on operational improvements as key factors for a potential recovery in the coming year.
Price Action: Boeing's shares were up 0.92% at $156.44 during pre-market hours on Monday, as per Benzinga Pro data.