Boeing Co. (BA) is preparing to initiate a capital raise as soon as Monday to bolster its financial reserves amidst ongoing challenges, according to Bloomberg sources. The company aims to gather over $15 billion through this funding endeavor, with the prospect of an increase if demand allows. This initiative is expected to encompass both equity shares and convertible debt, as reported.
Last week, Boeing disclosed its engagement in a $10 billion supplemental credit agreement with financial institutions including BofA Securities, Inc., Citibank, N.A., Goldman Sachs Lending Partners LLC, and JPMorgan Chase Bank, N.A.
Additionally, the International Association of Machinists and Aerospace Workers Local 751 announced on Wednesday that 64% of its members voted against a new labor contract proposed by Boeing, thus continuing the strike across all designated locations.
Boeing's latest offer featured a 35% wage increase over four years, a $7,000 ratification bonus, a reinstated incentive plan, and enhanced contributions towards workers' 401(k) retirement plans. This includes a one-time $5,000 contribution and up to 12% in employer contributions. However, the proposal does not reinstate the traditional pension plan that was discontinued for union members a decade ago.
Since September 13, more than 33,000 members of the IAM at Boeing facilities in Washington state, Oregon, and California have been on strike. Earlier this month, Boeing announced plans to reduce its workforce by approximately 10%, equating to about 17,000 jobs, due to ongoing financial setbacks and production delays exacerbated by the machinists' strike.
