Boeing Offers 90 Million Shares & $5 Billion Depositary Shares To Boost Liquidity
Boeing Offers 90 Million Shares & $5 Billion Depositary Shares To Boost Liquidity
Update:
Boeing’s money raise officially hit this AM. The offering: 90 million shares of common stock and $5 billion in depositary shares.
Goldman Sachs, BofA Securities, Citigroup, JPMorgan are leading the deal as joint bookrunning managers for both offerings.
The Boeing Company [NYSE: BA] (“Boeing” or the “Company”) announced today the launch of concurrent separate underwritten public offerings of (i) 90,000,000 shares of common stock, par value $5.00 per share (“Common Stock”) of the Company and (ii) $5 billion of depositary shares (“Depositary Shares”), each representing a 1/20th interest in a share of newly issued Series A Mandatory Convertible Preferred Stock, par value $1.00 per share (“Preferred Stock”), of the Company (together, the “Offerings”). Boeing expects to grant to the underwriters of the Offerings a 30-day option to purchase up to an additional (i) 13,500,000 shares of Common Stock and (ii) $750 million of Depositary Shares, solely to cover over-allotments, if any. Boeing intends to use the net proceeds from the Offerings for general corporate purposes, which may include, among other things, repayment of debt, additions to working capital, capital expenditures, and funding and investments in the Company’s subsidiaries.
Holders of the Depositary Shares will be entitled to a proportional fractional interest in the rights and preferences of the Preferred Stock, including conversion, dividend, liquidation and voting rights, subject to the provisions of a deposit agreement. 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, into a variable number of shares of Common Stock based on the applicable conversion rate, and each Depositary Share will automatically convert into a number of shares of Common Stock equal to a proportionate fractional interest in such shares of Common Stock. The dividend rate, conversion terms and other terms of the Preferred Stock will be determined at the time of pricing of the offering of the Depositary Shares. Currently, there is no public market for the Depositary Shares or the Preferred Stock. Boeing intends to apply to list the Depositary Shares on the New York Stock Exchange under the symbol “BA.PRA.”
* * *
Boeing shares moved lower in premarket trading in New York after a Bloomberg report revealed a capital raise could take place as soon as Monday. This would prevent credit rating agencies from downgrading Boeing’s investment-grade credit rating to speculative territory amid dwindling cash reserves and a drawn-out strike.
Three sources familiar with the matter said the beleaguered airplane maker, plagued by a months-long strike, could raise as much as $15 billion, adding the amount could change depending on demand.
Boeing’s advisers have been lining up a funding deal for weeks.
These are dire times for Boeing…
-
Oct 1: Dilution Fears: Boeing Considers $10 Billion In New Shares As Strikes Strain Liquidity
-
Oct 15: Boeing Desperate For Liquidity, Files $25 Billion Shelf Registration
-
Oct 20: Boeing Explores Asset Sales In Potential Shrinking Of Corporate Footprint
The people noted that the transaction will likely consist of a combination of common shares and a mandatory convertible bond. About two weeks ago, the planemaker filed a $25 billion shelf registration.
At the time, Boeing wrote in the shelf filing: “This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company’s balance sheet over a three-year period.”
The latest strike estimates from JPMorgan analysts indicate Boeing will lose $1.5 billion each month if workers stay off the production lines of commercial jets and continue picketing in the streets. Three major rating agencies have warned that the strikes could downgrade Boeing’s investment-grade credit rating to speculative territory, in other words, ‘junk.’
Last month, CFO Brian West told analysts at the Morgan Stanley conference that Boeing “will take any necessary actions” to preserve its investment grade rating and beef up its balance sheet.
“We are perfectly comfortable to supplement our liquidity position to support those two objectives,” West told investors when asked about future money raises.
Goldman analysts Noah Poponak and Anthony Valentini recently told clients:
“The company faces a balance sheet question, and has suggested raising capital is possible given the importance of the credit rating. We assume Boeing raises $12bn of equity before year-end, which matches the total maturities due in 2025 + 2026, and keeps the cash balance well north of $10bn in the near-to-medium-term while they ramp back up commercial deliveries and strive to resolve defense profitability.”
Bloomberg noted:
“Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free-cash outflow to around $14 billion for the year. The planemaker expects to continue burning cash through the first half of next year as it restarts its airplane factories, including the assembly lines for its cash-cow 737 Max jetliner.”
In markets, Boeing shares are lower by about 1% in premarket trading…
At all costs, Boeing must protect its investment-grade rating.
Tyler Durden
Mon, 10/28/2024 – 07:20
Why Austrian Business Cycle Theory Is Better than Keynesianism
As the Federal Reserve engineers one financial bubble after another, we are reminded that the Austrian Business Cycle Theory explains what is happening and how there is a better way.
Boom Versus Growth: Why the ABCT Is Superior to Keynesianism
As the Federal Reserve engineers one financial bubble after another, we are reminded that the Austrian Business Cycle Theory explains what is happening and how there is a better way. This stands against Keynesianism, which leads an economy to ruin.
Joe Rogan BREAKS RECORDS: ABC News and CBS News Debates Ratings STOMPED – Harris CANCELS Appearance!
Joe Rogan BREAKS RECORDS: ABC News and CBS News Debates Ratings STOMPED – Harris CANCELS Appearance!
#joerogan #joeroganexperience #jre #joeroganpodcast #podcast #pbdpodcast #abcnews #disneynews #cbsnews #entertainmentnews #ratings #views #viewership
Starring LW Ghost, @lornconner9030 and @aHangryTable
Art by @JFG
Ad by @FloralFromUnderARock
References:
@joerogan
https://www.youtube.com/watch?v=hBMoPUAeLnY&t=10s&ab_channel=PowerfulJRE
JRE Library
https://jrelibrary.com/articles/stats/
CBS News
https://www.cbsnews.com/news/trump-harris-debate-abc-ratings-2024/
Breitbart
https://www.breitbart.com/entertainment/2024/10/25/kamala-harris-bails-on-joe-rogan-due-to-scheduling/
Help support Vacation Radio: https://www.youtube.com/watch?v=NNLjzt9gHSk
For even more exclusives and info to hot for anywhere else, check out WDW Pro on Patreon: https://www.patreon.com/WDWPro
Special Thanks
Space Dave 2000, Theme Park Zilver, Kocho Dragon, Marcus Squintess
Views with Hughes, Captain John Dee, Tommy Tables, Lester San Jose,
Red Tigress, Dr Kocho Dragon, Staccato DDS,
Dustin Sensenig & May the Schwartz Be With You
FAIR USE NOTICE. WDW Pro videos may contain copyrighted material, the use of which may not always be specifically authorized by the copyright owner. In such cases, the material is displayed for commentary and educational purposes. It is included under the sincere belief this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. If you wish to use copyrighted material from this video for purposes of your own, you must obtain permission from the copyright owner.
DISCLAIMER: Some videos featured on this channel contain rumor and speculation. All videos are forms of editorialized news coverage. Please view these videos as the subjective material they are intended to convey. No harm is intended to any party discussed or mentioned in any video.
The WDW Pro Channel is wholly owned and operated by Prelude Studios LLC.
Israel Confirms That The IDF Has Begun Precise And Ongoing Retaliatory Strikes Against Iran As World Braces To See How Tehran Will Respond
by Geoffrey Grinder, Now The End Begins: Five explosions were reported heard across Tehran and the nearby city of Karaj early on Saturday morning, according to Iranian media, in what is alleged to be the beginning of an Israeli retaliatory attack on Iran. Earlier today, we told you about the shipment of US F-16s that arrived […]
Korybko: Brazil’s Veto Of Venezuela’s BRICS Bid Exposes Multipolar Rift
Korybko: Brazil’s Veto Of Venezuela’s BRICS Bid Exposes Multipolar Rift
Authored by Andrew Korybko via Substack,
Brazil’s ruling Workers’ Party (PT per its Portuguese abbreviation) has presented itself as an Ibero-American champion of multipolarity since its inception, as has its leader President Lula since his first term began in 2003, but these narratives are now challenged like never before after last week.
Brasil de Fato cited diplomatic sources to report that Brazil vetoed Venezuela’s BRICS partnership request while Putin also acknowledged during a press conference that Russia and Brazil disagree on Venezuela.
This outcome was made all the more scandalous by Lula’s unexpected “head injury” that was allegedly responsible for him not flying to Kazan and Venezuelan President Maduro’s surprise visit to the event. Lula might have either made-up his injury or exaggerated it in order not to embarrass himself any further by arguing in person against his multipolar neighbor’s requested BRICS partnership. He might also have caught wind of Maduro’s plans and thus ducked out in order to avoid a potential confrontation there.
In any case, one of the world’s top energy producers wasn’t able to achieve the consensual support required for partnering with the world’s top financial multipolarity platform, though this analysis here from last month explains how non-members and -partners can still coordinate their associated policies with BRICS. Be that as it may, it was still a blow to Venezuela’s prestige not to be inaugurated as an official partner, but Lula’s PT harmed its own reputation in a much worse way by reportedly vetoing this.
Keeping in mind the abovementioned insight about how any country can voluntarily coordinate its associated policies with BRICS even in the absence of formal membership or partnership status, Brazil could have let Venezuela join in order to keep up the PT’s charade about being a multipolar champion. Instead, it maliciously prevented this, which only served to virtue signal support for the US’ ruling Democrats’ shared policy towards that country at the expense of the trust that Brazil built within BRICS.
It was explained in August how “Ortega’s Condemnation Of Lula’s Meddling In Venezuela Debunks A Top Alt-Media Lie”, which hyperlinked at the end to a list of over 50 related analyses from October 2022 till then about Lula’s post-imprisonment ideological alignment with that aforesaid imperialist party. In brief, he and his party were never true multipolar champions like they presented themselves as, but were always more akin to “social democrats” or what’s been called the “compatible left” by traditional leftists.
All the while, however, the PT’s social media influencers and cultish clique of supporters across the world aggressively gatekept the false narrative that their “heroes” pushed. This most often took the form of viciously “canceling” anyone who dared to even remotely question this debunked dogma. This charade was thus kept up until last week when it became impossible to deny that Lula’s PT had betrayed regional multipolar leader Venezuela solely to curry favor from what might soon be the US’ outgoing ruling party.
There shouldn’t be any question about the veracity of Brasil de Fato’s diplomatic sources either after Venezuela’s Foreign Ministry came out with an official statement slamming Lula’s veto. They described it as an “immoral aggression” that “reproduce[ed] the hatred, exclusion and intolerance promoted from the centres of power in the West.” They then added that “The Venezuelan people feel indignation and shame” after what Lula just did. These are very strong words that should be taken very seriously.
Readers should also know that while Lula hasn’t acknowledged Maduro’s re-election, Putin proudly thundered during last week’s event that “Venezuela is fighting for its independence, for its sovereignty…We believe that President Maduro won the elections, won fairly. He formed a government.” His words threw the PT onto the horns of yet another narrative dilemma by suggesting that Brazil’s stance is against another fellow Global South country’s “independence” and “sovereignty”.
The Venezuelan Question is therefore a black-and-white issue: one either supports Lula and Biden’s regime change efforts in Venezuela, with each advancing this in their own but still coordinated way, or they support Maduro and Putin’s defense of Venezuela’s independence and sovereignty.
There’s no middle ground no matter what lies top PT influencers might soon spew. Honest members from the Alt-Media Community will accurately report this while dishonest ones will keep covering up for the PT.
Tyler Durden
Sun, 10/27/2024 – 23:20
Scientific integrity
Link for the full film First do no Pharm, https://cerealkillers.gumroad.com/l/nopharmfilm/drjohn
This is film isn't just an exposé – it's a call to arms. It will provide you with the knowledge and tools to fight back against a system that values profits over patients. We'll show you how to navigate this treacherous landscape, how to protect yourself and your loved ones from the excesses of an industry gone mad.
Email for Dr. Malhotra consultations
concierge@hum2n.com
Trump: Kamala Is Empty ‘Vessel’ for ’Crooked Radical Left Machine’
Former President Donald Trump said Sunday night that Vice President Kamala Harris is an empty “vessel” for the “vicious, crooked, radical-left machine that runs today’s Democrat Party.”
The post Trump at Madison Square Garden: Kamala Is Empty ‘Vessel’ for ’Crooked Radical Left Machine’ appeared first on Breitbart.
Trump Supports Tax Credit for Family Caring for Sick Loved Ones
Former President Donald Trump announced Sunday his support for a tax credit for family members who care for an ill parent or loved one.
The post Trump Supports Tax Credit for Family Members Caring for Sick Loved Ones appeared first on Breitbart.
Is Agatha All Along the WORST Disney Plus Show Ever? Marvel Reaches Unwatchable Status…
Is Agatha All Along the WORST Disney Plus Show Ever? Marvel Reaches Unwatchable Status…
#agatha #agathallalong #wanda #wandavision #disneyplus #disney+ #marvel #mcu #marvelstudios #marvelentertainment
Starring @lornconner9030, @TooneyTownTV, Kevin Apollo, @followthebradleysfun, @JonasJCampbell and @NolanThunder!
Art by @JFG
Ad by @FloralFromUnderARock
Help support Vacation Radio: https://www.youtube.com/watch?v=NNLjzt9gHSk
For even more exclusives and info to hot for anywhere else, check out WDW Pro on Patreon: https://www.patreon.com/WDWPro
Special Thanks
Space Dave 2000, Theme Park Zilver, Kocho Dragon, Marcus Squintess
Views with Hughes, Captain John Dee, Tommy Tables, Lester San Jose,
Red Tigress, Dr Kocho Dragon, Staccato DDS,
Dustin Sensenig & May the Schwartz Be With You
FAIR USE NOTICE. WDW Pro videos may contain copyrighted material, the use of which may not always be specifically authorized by the copyright owner. In such cases, the material is displayed for commentary and educational purposes. It is included under the sincere belief this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. If you wish to use copyrighted material from this video for purposes of your own, you must obtain permission from the copyright owner.
DISCLAIMER: Some videos featured on this channel contain rumor and speculation. All videos are forms of editorialized news coverage. Please view these videos as the subjective material they are intended to convey. No harm is intended to any party discussed or mentioned in any video.
The WDW Pro Channel is wholly owned and operated by Prelude Studios LLC.