Boeing Co. is making moves to raise as much as $25 billion according to recent reports. This move aims at strengthening its balance sheet, a critical procedure in ensuring its financial health in the midst of the current global economic crisis driven primarily by the Covid-19 pandemic’s effect on the aviation industry.
The company plans to do this by issuing bonds rather than relying on a government bailout. The bonds, which are expected to be given ratings of Baa1, BBB+, and BBB- by Moody’s, Fitch, and S&P respectively, will span across seven tranches, with maturities of three to 40 years.
The impact of the pandemic has seen a drastic decline in demand for air travel globally, culminating in reduced need for new aircraft. This has heavily hit manufacturers like Boeing. The company is hopeful that by raising this capital, they will be better suited to navigate through the crisis and strengthen the company’s overall financial footing.
