Official announcements from Boeing or IAM union

Boeing Launches $19 Billion Share Sale Amid Strike to Avert Credit Downgrade

Oct 28, 2024, 12:11 PM

Boeing Co. has launched a nearly $19 billion share sale, one of the largest ever by a public company, to bolster its finances amid ongoing financial strains. The planemaker announced the offering of 90 million shares of common stock at a $5.00 par value and $5 billion in depositary shares. Goldman Sachs is the lead underwriter for the capital raise, which aims to enhance Boeing's liquidity, prevent its credit rating from being downgraded to junk status, and address the financial impacts of a month-long strike by the International Association of Machinists (IAM) union. The strike has been costing Boeing an estimated $50-100 million per day. The company received clearance from the U.S. Securities and Exchange Commission to raise up to $25 billion and plans to use part of the funds to repay $12 billion in debt maturing in 2025-2026 and preserve $10 billion in cash.