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Boeing has announced the initiation of two separate underwritten public offerings. The aerospace company is offering 90 million shares of common stock and $5 billion worth of depositary shares, each representing a 1/20th interest in newly issued Series A Mandatory Convertible Preferred Stock. Boeing has also given underwriters a 30-day option to purchase an additional 13.5 million shares of common stock and $750 million in depositary shares to cover any over-allotments.
The proceeds from these offerings are intended for general corporate purposes, which may include debt repayment, capital expenditures, and investments in subsidiaries. Holders of the depositary shares will gain fractional rights to the preferred stock's conversion, dividend, liquidation, and voting rights. The preferred stock will automatically convert into common stock by October 15, 2027.
The lead joint bookrunning managers for these offerings include Goldman Sachs & Co. LLC, BofA Securities, Citigroup, and J.P. Morgan. Other joint bookrunning managers are Wells Fargo Securities, BNP PARIBAS, Deutsche Bank Securities, Mizuho, Morgan Stanley, RBC Capital Markets, and SMBC Nikko. PJT Partners is serving as Boeing's financial advisor.
