US, WASHINGTON (ORDO NEWS) — Boeing Co is working with investment banks on a multi-billion dollar financing package to bolster its balance amid falling demand for air travel due to the pandemic. It is reported Reuters, citing three sources familiar with the situation.
The American aircraft manufacturer may offer investors bonds in the coming days, provided that market conditions are favorable, sources said.
According to them, the exact timing and size of the proposal have not been determined. A company may raise $ 10 billion or more depending on investor demand, one of the agency’s interlocutors added.
Boeing is also considering appealing to the U.S. Treasury Department for help with a $ 17 billion program for companies that are important to national security, sources say.
However, David Calhoun, chief executive officer of the company, is wary of the terms of such assistance, especially the possibility that Boeing will have to give the government a share in the share capital.
The company is also exploring the possibility of financial support provided to companies by the Federal Reserve, one source said.
Calhoun told investors Monday that Boeing would have to borrow more money over the next six months.
He also warned shareholders that he was not sure that the company would resume paying dividends in the medium term.
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