Boeing announced plan to sell shares worth almost $19 billion (€17,564 million) increase your liquidity and avoid a possible downgrade of your credit rating, caused by a strike by its workers in Seattle (USA), which continues into its seventh week.
Specifically, The manufacturing company is offering 90 million common shares and approximately $5 billion (4.621 million euros). in depositary shares, according to a statement Monday.
Thus, the goal is to use profits for general corporate purposes, which may include, but are not limited to, debt repayment, working capital, capital expenditures, and financing and investment in subsidiaries.
Goldman Sachs & Co LLC, BofA Securities, Citigroup and JP Morgan are acting as joint lead managers for the offering, while Wells Fargo Securities, BNP Paribas, Deutsche Bank Securities, Mizuho, Morgan Stanley, RBC Capital Markets and SMBC Nikko are also acting as “joint bookrang managers.” For its part, PJT Partners is Boeing’s financial advisor.
Last week, striking workers rejected the company’s latest offer, which included a 35% wage increase over four years, so they are continuing strikes that began more than a month ago on September 13. Of the 33,000 striking workers, 64% voted against the proposal.
Triple your losses
The strike has cost the North American company tens of billions of dollars, with credit rating agencies warning of the risk of being classified as junk.
Additionally, the manufacturer announced new quarterly results, tripling its net loss to $7,968 million (€7,398 million) in the January-September period, up 260% from $2,212 million (€2,053 million) for the same period in 2023.
In this context, the manufacturer’s CEO Kelly Ortberg acknowledged in a statement that “It will take time to bring Boeing back to its old legacy. saying that with the “right” approach and culture, it could once again become “an iconic company and a leader in the aerospace industry.”
“Going forward, we will focus on fundamentally changing the culture, stabilizing the business and improving program delivery, while laying the foundation for Boeing’s future,” he added.