Boeing is looking for a $19 billion boost

• Boeing is looking to raise astir $19 cardinal to combat its deficiency of cash.
• It comes aft Boeing reported a nett nonaccomplishment of $6.1 cardinal successful nan 3rd quarter.
• Boeing has faced respective difficulties this year, for illustration a national onslaught and nan Alaska Airlines blowout.

Boeing needs cash, and it's trying to raise almost $19 cardinal arsenic nan institution looks to boost its liquidity.

The planemaker announced Monday that it is offering 90 cardinal communal shares and astir $5 cardinal of depositary shares for sale. Based connected Friday's closing stock value of $155.01, that's worthy astir $18.95 cardinal successful total.

This news comes aft Boeing revenge a prospectus earlier this period stating that it whitethorn waste up to $25 cardinal successful securities, including bonds, caller shares, and banal options.

That's connected apical of nan $10 cardinal in installments agreement that it entered into pinch Bank of America, Citibank, Goldman Sachs, and JPMorgan Chase, according to a regulatory filing connected October 14.

Boeing said successful a statement that it "intends to usage nan nett proceeds from nan Offerings for wide firm purposes, which whitethorn include, among different things, repayment of debt, additions to moving capital, superior expenditures, and backing and investments successful nan Company's subsidiaries."

When nan prospectus was filed, nan institution described nan fundraising efforts as "two prudent steps to support nan company's entree to liquidity," adding that it would thief nan institution "navigate done a challenging environment."

News of nan offering comes arsenic nan institution faces a troubled financial outlook.

Last Wednesday, Boeing reported a net nonaccomplishment of $6.1 billion successful its third-quarter earnings. It recorded a nonaccomplishment of much than $1.4 cardinal successful nan erstwhile quarter.

Boeing's shares are down astir 40% since nan commencement of nan year, and in installments ratings agencies person said its bonds are astatine consequence of being downgraded to junk status.

Also successful its third-quarter earnings, it reported an summation successful its spending connected its Starliner task by $250 million. To date, it has spent $1.85 cardinal connected nan Starliner program.

2024 has been a challenging twelvemonth for Boeing.

In January, an Alaska Airlines Boeing 737 Max mislaid a doorway plug successful midair — sparking regulatory scrutiny and customer frustrations that saw erstwhile CEO Dave Calhoun resign.

Boeing is besides facing an ongoing workers' strike. It started connected September 13 aft national members rejected a proposal to hike wages by 25% complete 4 years. Last Wednesday, Boeing workers rejected a connection pinch a 35% costs summation complete 4 years.

Ron Epstein, a Bank of America analyst, estimated nan strike was costing Boeing $50 cardinal daily.

Earlier this month, Boeing announced plans to laic off 10% of its workforce and a further hold to its much-anticipated 777X program.

News of nan stock offering looks group to push Boeing's banal value higher connected Monday, pinch shares up 0.8% successful premarket trade.