Boeing to raise USD19 billion for debt repayment and more

Boeing Co announced on Monday it will launch two share offerings totaling $19 billion to support "general corporate purposes," primarily aimed at debt repayment.

Boeing to raise USD19 billion for debt repayment and more

The offerings include 90 million shares of common stock, valued at approximately $14 billion, and $5 billion in depositary shares. Boeing shares dipped 1.6% in pre-market trading to $152.50 on the news. The Arlington, Virginia-based aerospace giant also stated that it may grant underwriters a 30-day option to buy an additional 13.5 million shares, valued at roughly $2 billion, and $750 million in depositary shares to cover potential over-allotments. Proceeds from the new equity will be used to strengthen Boeing’s balance sheet, with allocations for debt reduction, working capital, capital expenditures, and subsidiary investments.

Q3 loss reported

This capital raise comes shortly after Boeing reported a larger third-quarter loss, with net losses expanding to $6.17 billion from $1.64 billion a year earlier, partly due to prolonged labor strikes in the U.S. Last week, *The Wall Street Journal* reported that Boeing may be considering selling its space business, including its troubled Starliner vehicle, as part of new CEO Kelly Ortberg’s efforts to improve financial stability. Boeing has not confirmed the reports, stating it does not comment on market rumors or speculation. Ortberg, who joined in August, has expressed intentions to streamline Boeing’s operations to focus on core areas.