Boeing launches largest stock offering to avoid credit downgrade

Boeing announced a stock offering that could raise up to $24.3 billion as it aims to bolster its finances amid a mechanists’ strike.

The planemaker is offering 112.5 million shares at $143 each, a 7.75% discount compared to its previous closing price.

The move is crucial to maintaining its investment-grade credit rating, especially after a $6 billion loss in the third quarter after the strike halted production of critical plane models like the 737 MAX.

Currently, the troubled planemaker’s investment-grade rating sits at BBB (the lowest investment grade), and the continued strike could see its credit rating downgraded to junk, Fitch Ratings warned.

The ongoing strike is costing the company over $1 billion monthly, complicating its financial recovery efforts. Striking workers recently rejected a proposed 35% wage increase that didn’t reinstate traditional pension plans.