Boeing may tap the bond market for the first time since July as 737 Max costs swell

• Boeing is considering raising more debt for the first time since July to help offset the mounting costs of the 737 Max disaster, The Wall Street Journal reported Monday.
• Shares of Boeing dipped as much as 1.5% in trading Monday.
• Analysts estimate that Boeing will raise as much as $5 billion in debt. Expenses for the company could reach more than $15 billion in the first half of 2020, The Journal reported.
• Watch Boeing trade live on Markets Insider.

Boeing is considering tapping into the bond market to help offset the mounting costs of the 737 Max disaster, The Wall Street Journal reported Monday, citing sources familiar with the matter.

It would be the company's first debt offering since July. Shares of the aerospace giant fell as much as 1.5% Monday after the report was published.

Boeing is not nearing the end of its cash pile, The Journal reported. At the end of September, the company had $20 billion available, according to financial statements.

Still, the company is looking for ways to raise capital as it faces compensation claims from airlines and families of the 346 victims of two fatal 737 Max crashes over the course of five months in 2019.

The company also halted the production of the beleaguered plane in January. While this cut some costs for the company, it also further delayed the planes' return to service, throwing into uncertainty when Boeing will continue receiving payments for the planes it already finished building.

Analysts estimate that Boeing will raise as much as $5 billion in extra debt to help cover expenses, which could be more than $15 billion in the first half of 2020, The Journal reported.

In addition to raising debt, the company is considering deferring some capital expenditures, freezing acquisitions, and cutting spending on research and development to save cash, The Journal reported, citing sources familiar with the matter.

Boeing's credit outlook was downgraded to "negative" from "stable" by Fitch Ratings in July. It has also since been downgraded one notch by Moody's Investors Service and S&P Global, according to Bloomberg.

Boeing's former CEO Dennis Muilenburg was fired from the top spot at the end of December. Currently, Chief Financial Officer Greg Smith is serving as interim CEO until David Calhoun assumes the role on January 13.

The aerospace company did not respond to Market Insider's request for comment by press time.

Boeing gained 1% in 2019.