112.5 million shares of common stock were sold at $143 per share. The shares are selling at a discount of about 7.7% from the Oct. 25 closing price of $155.01 per share.
Boeing Co. raised about $21 billion through an extended share offering. It was one of the largest stock sales by a public company, Bloomberg reported.
Turns out 112.5 million ordinary shares were sold at $143 per share. The shares are selling at a discount of about 7.7% from the Oct. 25 closing price of $155.01 per share.
The company also sold $5 billion of depositary shares, representing 1/20 of its mandatory convertible preferred stock.
According to the publication, raising funds will solve one of the most urgent tasks of the new CEO Kelly Ortberg. Boeing’s balance sheet is in poor shape due to years of turmoil and the fallout from a strike now in its seventh week that has paralyzed 737 Max production.
In the fourth quarter, the company intends to burn about $4 billion in cash, which would prove a free flow of funds of about $14 billion per year. It expects to continue spending in the first half of next year as it reopens its factories, including its 737 Max assembly lines.
In New York on October 28, the company’s shares fell 2.8% to $150.69. Overall, the company’s shares are down about 42% this year, the second-worst performer in the Dow Jones Industrial Average.
As you know, last week workers at the Boeing factory voted to reject the company’s latest contract offer, which includes a 35% wage increase over four years. It is planned to reduce staff by approximately 10%.
The company on October 23 received permission from the US Securities and Exchange Commission to sell shares and debt worth up to $25 billion. Boeing also entered into a separate new credit agreement for $10 billion, which will give it “additional short-term access to liquidity. in difficult conditions.”
The company’s CEO is considering options to rationalize Boeing’s vast portfolio. He has already begun the review of the company’s activities, which should be completed by the end of the year. This review examines options for the future of its troubled Starliner space capsule program.
As reported, Boeing employees are on strike demanding higher wages. The strike led to the suspension of production of the 737, 777 and 767 aircraft models. The international rating agency S&P Global Ratings estimates the damage from the protest at Boeing at more than $1 billion per month.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.