Boeing Launches $22 Billion Stock Offering Amid Strike Struggles

Boeing launched a stock offering worth up to $22 billion to strengthen its finances amid a prolonged workers' strike affecting production. The company offers 90 million shares and $5 billion in convertible securities to preserve its investment-grade credit rating, facing cash flow challenges and labor issues.

Boeing initiated a substantial stock offering on Monday, aiming to raise up to $22 billion. This move comes as the aircraft manufacturer seeks to bolster its financial standing, pressured by a lengthy strike by its workforce which began in September.

The strike, involving roughly 33,000 machinists, has disrupted the production of crucial models, including Boeing's profitable 737 MAX. To mitigate these financial strains, the company is offering 90 million shares in common stock alongside $5 billion in mandatory convertible securities.

Market analysts, including S&P Global Ratings, view this offering positively for Boeing's credit quality. However, Boeing must navigate its ongoing cash burn, exacerbated by labor disputes and regulatory challenges, as it strives to avoid a downgrade from its prized investment-grade credit rating.

(With inputs from agencies.)