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Boeing has announced plans to raise up to $22 billion through stock offerings as the company continues to face significant financial challenges.

Let’s bring you up to speed: Over the past year, Boeing has faced a series of operational and labor setbacks that have strained its finances. A key issue was the discovery of a defect in the 737 MAX’s door plug—a critical component for cabin pressurization and safety—which forced Boeing to halt production, creating a backlog and delaying deliveries of one of its most profitable aircraft. At the same time, Boeing encountered a major labor dispute, with around 33,000 machinist union workers striking in September over demands for higher wages and better benefits. This strike is reportedly costing Boeing over $1 billion per month, adding to the $6 billion loss the company recorded last quarter.

Boeings 737 Max Experi

Bring in the money: To raise capital, Boeing has launched a significant offering of 90 million common shares, with the goal of generating up to $13.95 billion. Additionally, the company is issuing $5 billion in mandatory convertible securities, set to convert by 2027 with a dividend range of 6.0% to 6.5%. If demand exceeds expectations, Boeing has authorized underwriters to sell an additional 13.5 million shares and $750 million in convertible securities, potentially raising an extra $2.1 billion. This could bring the total to $22 billion, which Boeing plans to use as working capital and for debt repayment.

More money: This all comes as Boeing recently announced that it secured a $10 billion credit line from major banks last week.

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