Boeing has launched two concurrent offerings today, which include the sale of 90 million shares of common stock at par value of $5.00 per share; and $5bn depositary shares, each representing a 1/20th interest in a share of newly issued series A mandatory convertible preferred stock, par value $1.00 per share.
Boeing has also granted an option to purchase an additional 13.5 million shares of common stock and $750 million depository shares to cover over-allotments.
This comes less than a week after the manufacturer posted a net loss of $6.17bn in its third quarter 2024 results, which were published on October 23, 2024. This was a marked decline from its net loss of $1.44bn reported in the previous quarter as well as its $1.64bn in the same quarter last year. Basic loss per share in the period was $9.97, compared to a $2.70 loss per share last year.
The preferred stock is set to carry a $1,000 per-share liquidation preference. Unless converted earlier, each preferred stock share will automatically convert around October 15, 2027, into a variable number of common stock shares, based on the applicable conversion rate. Each depositary share will similarly convert, reflecting a proportional fractional interest in the common stock shares.
The manufacturer intends to use the proceeds of the offerings for general corporate purposes, including repaying existing debt, additions to working capital, capital expenditures, and funding and investments in the manufacturer’s subsidiaries.
Goldman Sachs, BofA, Citigroup and JPMorgan are acting as lead joint bookrunning managers. Wells Fargo, BNP Paribas, Deutsche Bank, Mizuho, Morgan Stanley, RBC and SMBC Nikko are also acting as joint bookrunning managers. PJT Partners is acting as Boeing's financial advisor.