(Bloomberg) — Boeing Co.’s capital increase of more than $20 billion. delivered a big payday to four banks just as stock market issuance started to cool in the run-up to the US elections.
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Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. are expected to earn as much as $75 million each for their roles as lead joint bookrunners on the stock raise, based on Boeing’s filings with the U.S. Securities and Exchange Commission. That accounts for nearly 80% of the total fee pool shared by the 20 or so banks that worked on the deal.
Boeing this week raised about $23.5 billion in an extensive capital raise in an effort to strengthen its balance sheet and avoid a possible downgrade to junk. The sale was one of the largest ever of its kind by a publicly traded company. It included a sale of approximately $18.5 billion of common stock, including the over-allotment shares sold by the underwriters later in the week, and $5 billion of depository receipts representing an interest in mandatorily convertible preferred stock.
Representatives from Boeing, Goldman Sachs, Bank of America, Citigroup and JPMorgan declined to comment.
Other banks working on the sale included Wells Fargo & Co., BNP Paribas SA, Deutsche Bank AG and Morgan Stanley. These companies were listed as joint bookrunning managers. PJT Partners Inc. acted as financial advisor to Boeing for the offering.
New and existing stock sales, including IPOs, are having their best year since IPOs in 2021, according to data compiled by Bloomberg. But activity during the traditional post-Labor Day period has waned as companies prepare for Tuesday’s U.S. presidential election.
–With help from Julie Johnsson.
(Adds additional advisors in fifth paragraph)
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