Boeing Co.’s recent $23.5 billion capital raise has proven lucrative for four major banks: Goldman Sachs, Bank of America, Citigroup, and JPMorgan Chase. These institutions, acting as lead joint bookrunners, are each poised to earn up to $75 million in fees, according to Boeing’s filings with the US Securities and Exchange Commission. Together, these banks will share nearly 80% of the total fee pool from the transaction, which involved around 20 banks in total.
The capital raise, among the largest ever conducted by a public company, comes as Boeing seeks to bolster its balance sheet and prevent a downgrade to junk credit status. The offering consisted of approximately $18.5 billion from a common share sale, including over-allotment shares, and an additional $5 billion from depositary shares linked to mandatory convertible preferred stock.
While representatives from Boeing and the leading banks declined to comment, other institutions, including Wells Fargo, BNP Paribas, Deutsche Bank, and Morgan Stanley, also participated as joint bookrunning managers. PJT Partners acted as Boeing’s financial advisor.
Despite a strong year for equity issuances, with activity nearing levels last seen during the IPO boom of 2021, the market has recently cooled. Many companies are adopting a wait-and-see approach as the US presidential election draws near, impacting new share sales during the traditional post-Labor Day period.