Boeing Co is working with investment banks on a multibillion-dollar bond-fueled financing package as it aims to shore up its balance sheet amid a sharp travel downturn due to the coronavirus pandemic, three people familiar with the matter said on Tuesday. The preparations reflect Boeing's confidence it can tap the capital markets to strengthen its finances, even as the largest US planemaker weighs seeking government aid.
Boeing has lined up investment banks to potentially market an offering to bond investors in the coming days, provided that market conditions are favorable, the sources said, adding the exact timing and size of the offering had not been decided. The proceeds could amount to $10 billion or more, depending on investor demand, one of the sources added.
The sources asked not to be identified because the matter is confidential. Boeing declined to comment. The company is expected to elaborate on its funding options when it unveils its first-quarter earnings on Wednesday.
The planemaker has been trying to bring its 737 MAX jet back into service after two fatal crashes, even as the aviation industry has been hammered by the coronavirus pandemic.
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