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, cautioning that 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.
Boeing is also examining the funding support available to companies from the Federal Reserve, one of the sources said. One of Federal Reserve’s newly established programs, the Primary Market Corporate Credit Facility, will provide support to companies issuing bonds without placing any strict conditions on them, such as limits to dividend payouts or executive compensation.
Calhoun told investors during the company’s annual shareholder meeting on Monday that the company would need to borrow more over the next six months.
Credit ratings agency Moody’s Investors Service Inc estimated this month that Boeing’s funding needs could top $30 billion in 2020. The company secured about half of this by drawing down on a $13.8 billion credit line in March, Moody’s said. Boeing also suspended its dividend.