(Bloomberg) — Boeing Co. launched a nearly $19 billion stock sale, one of the largest ever by a public company, to meet the struggling aircraft maker’s liquidity needs and avoid a possible deterioration of its credit rating.

The company proposed selling 90 million shares of common stock and about $5 billion in depositary shares, according to a statement Monday, confirming a previous Bloomberg News report.

The common stock share alone would total just under $14 billion, based on Friday’s closing price of $155.01. It would be the largest stock sale since SoftBank Group Corp. sold part of its stake in T-Mobile US Inc. in 2020, according to data compiled by Bloomberg.

Boeing shares rose 0.9% in U.S. premarket trading as investors welcomed the stability the stock sale would bring to the balance sheet after a 40% fall this year.

With over-allotments, the fundraising total could reach about $21.8 billion, according to Bloomberg calculations.

The cash infusion would free up one of new CEO Kelly Ortberg’s most pressing tasks. It is grappling with a balance sheet strained by years of unrest and the aftermath of a strike, now in its seventh week, that is crippling production at the company’s main cash cow, the airliner 737 Max. Boeing needs a capital infusion to maintain its investment-grade rating and finance ramping up production once the walkout ends.

The company is on track to use about $4 billion in cash during the fourth quarter, which would bring its free cash outflows to about $14 billion for the year. The planemaker hopes to continue burning cash through the first half of next year as it restarts its aircraft factories, including assembly lines for its cash cow 737 Max jetliner.

Boeing factory workers voted last week to reject the company’s latest contract offer, which included a 35 percent pay increase spread over four years. The company plans to reduce its workforce by about 10 percent, Ortberg said in an Oct. 11 memo to employees.

The company received approval on Oct. 23 from the U.S. Securities and Exchange Commission to sell up to $25 billion in stock and debt. Boeing also established a separate new credit agreement worth $10 billion, giving it “additional near-term access to liquidity as we navigate a challenging environment.”

Ortberg is also considering options for streamlining Boeing’s vast portfolio. It has launched a review of its activities which the CEO hopes to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News reported.

The underwriters have the option to acquire an additional 13.5 million shares of common stock and $750 million in depositary shares to cover over-allotments.

PJT Partners is acting as financial advisor to Boeing for these offerings, the company said in the release.

Goldman Sachs, BofA Securities, Citigroup and JP Morgan are acting as joint lead managers, while Wells Fargo Securities, BNP Paribas, Deutsche Bank Securities, Mizuho, ​​Morgan Stanley, RBC Capital Markets and SMBC Nikko are acting as lead managers. joint file.

–With help from David Carnevali, Crystal Tse and Swetha Gopinath.

(Updates with offer details, share updates)

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