Boeing is looking to raise $19 billion in cash

Boeing (BA0.00%) is looking to shore up some $19 billion by selling stock as it faces a financial pinch from delivery delays and worker stoppages.

The aerospace giant said Monday that it’s issuing 90 million new shares, valued at $5 apiece, and $5 billion in new convertible preferred shares. Offerings of new shares tend to send share prices lower because they water down the value of existing stock.

Shares fell more than 1% in pre-market trading, to $153 each.

The sale comes less than a week after Boeing reported $6.2 billion in losses for the three months ended Sept. 30. What’s more, its free cash flow showed that $2 billion had leaked from its coffers — and will continue to do so through next year.

While the company badly needs cash, another likely driver behind the decision to launch an offering is Boeing’s credit rating, which is hovering just above junk-bond status. If the manufacturer’s credit is downgraded, it would become more difficult for it to raise further capital.

“We believe the company remains exposed to higher-than-expected cash usage and adjusted debt for the next year or two, which could further delay the expected recovery in its credit measure to levels we view as consistent with the rating,” ratings agency S&P (SPGI0.00%) said of Boeing earlier this month.

The company said the results reflect impacts of the more than month-long strike by the International Association of Machinists and Aerospace Workers (IAM), and charges on commercial and defense programs.

Boeing has faced a litany of setbacks this year, starting when a door plug blew off an Alaska Airlines flight in January. Since then, it has faced scrutiny both from regulators and the court of public opinion over a growing pile of safety issues.

Its most recent blow: A massive strike from its machinists, which some estimate is losing Boeing tens of millions of dollars a day. After furloughing workers early on, Boeing has since kicked the striking workers off company health care plans and announced plans to lay off 10% of its workforce.

The union last Wednesday rejected Boeing’s latest contract offer.