Boeing, in need of cash, looking to raise up to approximately $19B in offering
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This article was published 28/10/2024 (404 days ago), so information in it may no longer be current.
Boeing is looking to raise up to approximately $19 billion in a stock offering as the aerospace giant, which is dealing with a contentious strike, faces liquidity issues and tries to raise cash.
Boeing Co. said Monday that it will offer 90 million in common stock and $5 billion in depositary shares. The company’s stock closed at $155.01 on Friday,
The company said it plans to use the net proceeds for general corporate purposes, which may include repaying debt, additions to working capital, capital expenditures, and funding and investments in its subsidiaries.
Last week Boeing factory workers voted to reject the company’s latest contract offer and to continue a six-week strike that has halted production of its bestselling jetliners.
Local union leaders in Seattle said 64% of members of the International Association of Machinists and Aerospace Workers who cast ballots voted against accepting the proposal.
The labor standoff comes during an already challenging year for Boeing, which became the focus of multiple federal investigations after a door panel blew off a 737 Max plane during an Alaska Airlines flight in January.
The strike has deprived the company of much-needed cash that it gets from delivering new planes to airlines. On Wednesday, the company reported a third-quarter loss of more than $6 billion. Boeing hasn’t had a profitable year since 2018, and Wednesday’s numbers represented the second-worst quarter in the manufacturer’s history.
The company burned nearly $2 billion in cash, in the quarter, weakening its balance sheet, which is loaded down with $58 billion in debt. Chief Financial Officer Brian West said the company will not generate positive cash flow until the second half of next year.
Shares of Boeing slipped nearly 2% before the market open.