NEW YORK (AFP) – Boeing announced a stock offering yesterday expected to raise up to USD19 billion, saying proceeds will go towards repaying debt and investing in its subsidiaries.
The aviation giant, which last week reported a whopping USD6.2 billion quarterly loss, has been suffering from a strike by some 33,000 US workers that has paralysed two major plants since mid-September.
“Boeing intends to use the net proceeds from the offerings 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 company said.
It announced an offer to sell 90 million shares of common stock – valued at around 13.9 billion at current market prices – in addition to USD5 billion in depositary shares.
Boeing has in recent weeks announced measures to strengthen its cash position including a 10 per cent reduction in its global workforce, amounting to around 17,000 positions cut.
It is also considering the possible sale of its space business, which includes its problem-plagued Starliner vehicle, according to a report in the Wall Street Journal on Friday.
Meanwhile, the strike by Boeing workers has trundled on after union members rejected a new contract offer on Wednesday.
The walkout has halted activity at two Seattle-area factories that assemble the 737 MAX and 777.
