Boeing to Raise Over $15 Billion in Share Sale As Soon As Monday

The aircraft manufacturer is looking to raise funds to help it weather the downturn caused by coronavirus pandemic that has paralyzed the airline industry

The company plans to sell $10 billion in new shares as well as $5.5 billion in convertible senior notes that will mature in 2028

Boeing Co. is planning to raise more than $15 billion in a share sale as soon as Monday, according to people familiar with the matter, as the planemaker seeks to bolster its finances during the coronavirus pandemic.

The aircraft manufacturer plans to sell $10 billion of new shares, the people said, asking not to be identified because the information is private. It also plans to sell $5.5 billion convertible senior notes due 2028, they said.

Boeing declined to comment.

The fundraising comes as Boeing grapples with the fallout from the coronavirus pandemic, which has led to a collapse in air travel and forced airlines to cancel or defer orders for new planes.

Boeing has already taken steps to cut costs, including laying off workers and suspending production of its 787 Dreamliner aircraft. But the company has also been burning through cash, and analysts have said it will need to raise additional funds to avoid a liquidity crunch.

The share sale would be Boeing's second major fundraising effort since the pandemic began. In April, the company raised $25 billion in a debt sale and secured a $6 billion loan from the U.S. government.

The new fundraising effort is expected to be led by Goldman Sachs Group Inc. and JPMorgan Chase & Co., the people said.