Boeing Co. launched a share offering on October 28, 2024, aimed at raising nearly $19 billion to address liquidity challenges and mitigate the risk of a credit rating downgrade. The planemaker announced the sale of 90 million common shares and approximately $5 billion in depositary shares.
This financial maneuver comes as Boeing grapples with the effects of a prolonged strike by approximately 33,000 workers, which began in September and has significantly impacted production, particularly of the 737 MAX aircraft. The strike is estimated to be costing the company over $1 billion per month.
Boeing's shares declined by 1% in premarket trading following the announcement. The company has faced mounting financial pressures, reporting a $6 billion loss in the third quarter and indicating potential cash burn in the upcoming year.
In an effort to stabilize its finances, Boeing had previously entered into a $10 billion credit agreement and is exploring additional capital-raising measures totaling up to $25 billion through stock and debt offerings. Rating agencies have cautioned that a continued strike could lead to a downgrade in Boeing's investment-grade credit rating, which the company has maintained throughout its history.
As of September 30, Boeing reported cash and marketable securities totaling $10.5 billion, with $11.5 billion in debt maturing by February 1, 2026. The company is also committed to issuing $4.7 billion in shares to acquire Spirit AeroSystems and assume its debt.