Boeing Kicks Off Stock Sale That Could Raise Around $19B

KEY TAKEAWAYS

• Boeing on Monday launched the sale of around $19 billion in stock and depositary shares, as the troubled plane maker seeks to shore up its finances amid a crippling strike by its union machinists.
• Boeing said it will sell 90 million shares of common stock. That would amount to $13.95 billion if the shares are valued at their Friday closing price of $155.01 each.
• Boeing also is offering $5 billion in depositary shares.

Boeing (BA) on Monday launched the sale of around $19 billion in stock and depositary shares, as the troubled plane maker seeks to shore up its finances.

Boeing said it had kicked off the sale of 90 million shares of common stock. That would amount to $13.95 billion if the shares are valued at their Friday closing price of $155.01 each.

Boeing is also offering $5 billion in depositary shares for sale, which it said it intends to list on the New York Stock Exchange (NYSE) under the symbol "BA.PRA."

The plane maker, which is grappling with a crippling strike by its union machinists, will also offer the deals' underwriters a 30-day option to buy an additional 13.5 million common shares and $750 million of depositary shares.

Boeing said net proceeds would go toward the "repayment of debt, additions to working capital, capital expenditures, and funding and investments" in its subsidiaries.

Bloomberg earlier reported plans by Boeing to raise more than $15 billion in capital as it seeks to keep its investment-grade rating and fund its recovery from the strike.

Boeing Earlier Announced Plans To Raise as Much as $25B

Earlier this month, the company wrote in a regulatory filing that it plans to raise as much as $25 billion through the sale of debt or stock. It also said that it had struck a deal with several big banks to receive a $10 billion credit line.

Boeing is struggling with a cash drain worsened by the strike, with the union last week rejecting a contract that would have given members a 35% pay hike over four years. The company has said it is preparing to lay off about 10% of its workforce, or 17,000 people, and has postponed the launch of its first 777x jetliner.

The company posted an enormous third-quarter loss last week and has said that the ongoing cash burn will continue into 2025.

Boeing stock has lost 40% of its value this year through Friday's close, and is falling 1.5% an hour before the opening bell Monday.

UPDATE—This article has been updated to include confirmed details from Boeing and reflect more recent share prices. 

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