Boeing has priced its two upsized concurrent offerings, which 112.5 million common shares, up from 90 million announced on October 28, at $143 per share, and its $5 billion depositary stock offering at $50 apiece.
Boeing has also granted the underwriters in each respective offering a 30-day option to purchase up to an additional 16,875,000 shares of common stock and $750 million of depositary shares.
Boeing had previously launched two concurrent offerings, which included 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.
These upsized offerings come 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 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 Capital Markets and SMBC Nikko are also acting as joint bookrunning managers . Credit Agricole CIB, MUFG, Commerzbank, Santander, Academy Securities, Loop Capital Markets, Raymond James and Siebert Williams Shank are acting as co-managers. BTIG is acting as a co-manager for the Common Stock Offering and US Bancorp is acting as a co-manager for the depositary shares offering. PJT Partners is acting as Boeing's financial advisor.