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Boeing (BA+2.76%) needs a lot of cash, quickly, as it figures out how much longer it can hold out without making a deal to bring its striking machinists back to work. Wall Street decided to give the company the money, and then some.
The headline for Boeing’s latest press release, “Boeing Announces Pricing of Upsized Concurrent Offerings of Common Stock and Depositary Shares,” updates investors on the final status on this stage of its big fundraising effort. Originally, the company had laid out plans to get $19 billion from the deal. Instead, Boeing said it would be reaping $20.7 billion.
Shares in Boeing, which are down more than 38% this year, rose about 2% in early Tuesday trading. The machinist strike, which represents an existential threat on several fronts, is in its 47th day with no clear end in sight.
“As a result of the strike, production of our commercial aircraft, other than the 787 production in Charleston, and certain of our Defense, Space & Security products has halted, adversely impacting our business and financial position,” the planemaker said in the offering documents for its equity issuance. “This work stoppage has had and is expected to continue to have negative impacts on our key suppliers and customers.
“If we are unable to successfully negotiate a new contract with IAM 751 consistent with our assumptions and the strike continues for a prolonged period, our financial position, results of operations and cash flows would continue to be adversely impacted.”
Red flags aside, there are still investors who think Boeing is too big to fail.