Boeing announced a stock offering on Monday expected to raise up to $19 billion, saying proceeds will go towards repaying debt and investing in its subsidiaries.
The aviation giant, which last week reported a whopping $6.2 billion quarterly loss, has been suffering from a strike by some 33,000 US workers that has paralyzed two major plants since mid-September.
“Boeing intends to use the net proceeds from the offerings for general corporate purposes,” the company said in a statement.
These include, “repayment of debt, additions to working capital, capital expenditures, and funding and investments in the company’s subsidiaries,” it added.
Boeing announced an offer to sell 90 million shares of common stock — valued at around $13.9 billion at current market prices — in addition to $5 billion in depositary shares.
The company’s shares were down in premarket trading on Monday after the share sale was announced.
Boeing has been struggling with a string of problems in recent years, prompting the departure of its old chief executive, who was replaced in August by aerospace veteran Kelly Ortberg.
The 64-year-old said earlier this week that he was reviewing company operations with an eye towards narrowing Boeing’s profile.
Boeing announced an offer to sell 90 million shares of common stock — valued at around $13.9 billion at current market prices — in addition to $5 billion in depositary shares.
The company’s shares were down in premarket trading on Monday after the share sale was announced.
Boeing has been struggling with a string of problems in recent years, prompting the departure of its old chief executive, who was replaced in August by aerospace veteran Kelly Ortberg.
The 64-year-old said earlier this week that he was reviewing company operations with an eye towards narrowing Boeing’s profile.
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