US aerospace giant Boeing announced on Tuesday the pricing of its offerings of common stock and depositary shares.
The company priced separate underwritten public offerings of 112.50 million shares of common stock, par value $5.00 per share, at a public offering price of $143 per share; and $5 billion worth of depositary shares, each representing a 1/20th interest in a share of newly issued 6% Series A mandatory convertible preferred stock, par value $1.00 per share, at a public offering price of $50.00 per depositary share.
Boeing has granted the underwriters in each respective offering a 30-day option to purchase up to an additional 16.88 million shares of common stock and $750 million of depositary shares, solely to cover over-allotments if any, in each case at the public offering price less the applicable underwriting discount.
The common stock offering is expected to close on October 30, and the depositary shares offering is expected to close on October 31, subject to customary closing conditions.
The net proceeds from the common stock offering will be approximately $15.81 billion, while the net proceeds from the depositary shares offering will be around $4.91 billion, the company said.
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.
For the offerings, Goldman Sachs, BofA Securities, Citigroup, and JP Morgan are acting as lead joint bookrunning managers. Wells Fargo Securities, BNP Paribas, Deutsche Bank Securities, Mizuho, Morgan Stanley, RBC Capital Markets, and SMBC Nikko are also acting as joint bookrunning managers.