Shares of Boeing Co. $(BA)$ gained 0.6% in premarket trading Monday, after the troubled aerospace giant announced a $19 billion capital raise through pubic offerings of common stock and depositary shares. Included in the offerings are 90 million shares of common stock, which based on Friday's closing price of $155.01 would be valued at $13.95 billion. The company is also offering $5 billion of depositary shares. The company will also offer the underwriters of the offerings options to buy an additional 13.5 million common shares and $750 million of depositary shares to cover over-allotments. Boeing plans to use the proceeds from the offerings for general corporate purposes, which could include repayment of debt, working capital, capital expenditures and funding of its subsidiaries. The capital raise comes at a time that Boeing has warned of larger-than-expected quarterly losses and layoffs as a labor strike has entered its second month, and concerns that a high debt load could lead to a downgrade of the company's credit rating to "junk" status. The stock has tumbled 40.5% year to date through Friday while the S&P 500 has gained 21.8%.
-Tomi Kilgore
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October 28, 2024 06:58 ET (10:58 GMT)
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