Boeing to offer 90M shares of common stock, $5 billion of depositary shares

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The Boeing Company (NYSE:BA) Monday reported the launch of concurrent separate underwritten public offerings of 90M shares of common stock, par value $5.00 per share, and $5 billion of depositary shares.
The depositary shares each represent a 1/20th interest in a share of newly issued Series A Mandatory Convertible Preferred Stock, par value $1.00 per share of the company.
Boeing expects to grant to the underwriters of the offerings a 30-day option to purchase up to an additional 13.5M shares of common stock and $750 million of depositary shares, solely to cover over-allotments, if any.
Boeing (BA) intends to use the net proceeds for general corporate purposes, which may include repayment of debt, additions to working capital, capital expenditures, and funding and investments in the company’s subsidiaries.
The preferred stock is expected to have a liquidation preference of $1,000 per share. Unless earlier converted, each share of Preferred Stock will automatically convert, for settlement on or about October 15, 2027.
BA -0.88% premarket to $153.65.
Source: Press Release

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