As had been mooted, Boeing Co (NYSE:BA, ETR:BCO) announced a stock and convertible securities offering to reinforce its finances amid a prolonged strike by its machinist union workers and production issues impacting its 737 MAX aircraft.
In an update, it said could rake up to $24.3 billion as the planemaker increased its stock offering to 112.5 million shares priced at $143 each, a 7.75% discount, and issued $5 billion in convertible securities.
Boeing’s offering follows a third-quarter loss of $6 billion and the announcement it would likely eat into its dwindling cash reserves next year.
The six-week strike has halted production and added significant financial strain, with estimates suggesting monthly costs exceeding $1 billion.
Boeing recently entered a $10 billion credit agreement and faces upcoming debt obligations totalling $11.5 billion.
Rating agencies, including S&P Global, have warned that Boeing’s credit rating could be at risk if financial conditions worsen.
Boeing plans to use the funds to address debt and other corporate expenses.