does boeing have preferred stock? Essential guide

Does Boeing have preferred stock? Yes — as of Oct 29, 2024, Boeing issued a 6.00% Series A Mandatory Convertible Preferred Stock with depositary shares (1/20th interest) that trade as fractional in...

2026-01-20 02:30:00

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Does Boeing have preferred stock?

As of Oct 29, 2024, according to Boeing press releases and related SEC filings, the short answer to "does boeing have preferred stock" is yes. Boeing announced a concurrent offering that included a 6.00% Series A Mandatory Convertible Preferred Stock issued with depositary shares (each depositary share representing a 1/20th interest in a preferred share). This article explains what that issuance means, how the depositary shares work, the dividend and mandatory conversion mechanics, ranking and liquidation preference, trading/ticker notes, investor considerations and where to find the definitive legal disclosures.

This guide answers the direct question "does boeing have preferred stock" early, then steps through the key terms, mechanics, regulatory documents and practical implications for investors and corporate watchers. Readers will learn how the preferred instrument differs from Boeing common stock, how and when conversion happens, and where to verify up-to-date terms.

Background and authorization

Boeing’s corporate charter authorizes its board to create and issue one or more series of preferred stock with designations, preferences and relative rights set by the board and filed in a Certificate of Designations. Historically, Boeing primarily issued and traded common stock. The company’s corporate governance documents have long provided the board power to issue preferred shares to meet strategic capital needs.

Why would a company issue preferred stock? Companies use preferred stock to raise capital with equity-like features while offering investors fixed dividend-like payments and certain priority rights ahead of common stock in dividends and liquidation. Preferred stock can be structured in many ways — fixed-rate, cumulative vs. non-cumulative, convertible, or mandatory-convertible — to balance issuer and investor objectives.

Because readers often ask "does boeing have preferred stock" simply to know whether an equity-like, higher-ranking instrument exists for Boeing, it’s important to emphasize that Boeing’s 2024 action created such an instrument in a mandatory convertible format designed to behave like equity over time while providing a fixed payment stream until conversion.

2024 Series A Mandatory Convertible Preferred Stock — overview

In late October 2024, Boeing announced the issuance of a 6.00% Series A Mandatory Convertible Preferred Stock. The offering included depositary shares representing fractional interests in the preferred shares (see the Structure section). The stated dividend (coupon) was 6.00% per annum based on the $1,000 liquidation preference per preferred share.

The offering size, use of proceeds and several material mechanics were disclosed in Boeing press releases and in the SEC offering documents (prospectus supplement and free writing prospectus) released at the time of the offering. The company stated proceeds would be used for general corporate purposes, which may include working capital, capital expenditures, refinancing of indebtedness and other corporate needs. As with many offerings, the exact allocation of proceeds is at management’s discretion within the framework described in public filings.

If you are checking "does boeing have preferred stock" because you are tracking corporate financing activity, this issuance is a clear example of Boeing accessing the capital markets with an equity-like instrument that postpones final common share dilution until the mandatory conversion date.

Structure and mechanics

Key structural features answer practical parts of the question "does boeing have preferred stock": the company issued the preferred shares in a form paired with depositary shares that represent fractional interests for trading. The depositary share structure typically operates as follows:

Boeing issued whole preferred shares with a stated liquidation preference (commonly $1,000 per preferred share for many corporate preferreds). To facilitate trading in standard share sizes, the company issued depositary shares, where each depositary share represents a fixed fractional interest in one preferred share (Boeing’s issuance specified one depositary share equals 1/20th of a preferred share).
Depositary shares trade on an exchange as the publicly available vehicle for investors. They reflect entitlements to dividends and conversion rights on a proportional basis.
A bank or trust company acts as depositary and maintains the register of depositary shares, distributes dividends to depositary holders, processes transfers and effects conversion mechanics according to the Certificate of Designations and the deposit agreement.

This depositary structure means that when people ask "does boeing have preferred stock" in the market sense, the publicly traded instrument is the depositary share — a fractional interest — rather than a whole preferred share that is seldom directly traded by retail investors.

Dividend terms

The Series A carried a stated dividend rate of 6.00% per annum based on the liquidation preference. Dividends were payable quarterly on a set schedule: each Jan 15, Apr 15, Jul 15 and Oct 15, beginning Jan 15, 2025, as disclosed in the offering documents.

The Certificate of Designations and the prospectus supplement define whether dividends are cumulative or non-cumulative and the treatment of unpaid dividends. Investors should consult the legal documents for precise language, but the SEC filings and prospectus provide the authoritative statement of dividend treatment and payment contingencies.

Conversion mechanics (mandatory conversion)

A central feature that answers "does boeing have preferred stock" in convertible form is the mandatory conversion mechanic. The Series A was structured to mandatorily convert into Boeing common stock on or about Oct 15, 2027. Key mechanics included:

Mandatory conversion date around Oct 15, 2027, at which each preferred share would convert automatically into a variable number of Boeing common shares.
Conversion ranges were provided: each preferred share would convert into no fewer than approximately 5.8280 and no more than approximately 6.9940 shares of common stock. Because each depositary share represents 1/20th of a preferred share, each depositary share would convert into between approximately 0.2914 and 0.3497 common shares on the mandatory conversion date.
The final conversion rate within that range is typically determined using a market-based formula tied to the volume-weighted average price (VWAP) of Boeing common shares during a specified measurement period prior to conversion, subject to anti-dilution and adjustment clauses.
The conversion is mandatory, meaning holders do not need to take action to convert; conversion occurs automatically according to the terms and at the formula-determined ratio. The documents may also provide limited holder rights to convert earlier under specified circumstances (e.g., in the event of a fundamental change) and anti-dilution protections for certain corporate actions.

Because the conversion results in issuance of common shares, mandatory conversion reduces preferred shares outstanding and leads to common share dilution at the conversion date according to the conversion ratio actually applied.

Liquidation preference and ranking

The Series A was issued with a stated liquidation preference of $1,000 per preferred share. Preferred securities typically rank senior to common stock with respect to payment of dividends and distributions upon liquidation, dissolution or winding up. The Certificate of Designations and the SEC filings specify the exact ranking and subordination:

Preferred shares rank senior to Boeing common stock for distributions and liquidation.
Preferred shares rank on parity with any other of the company’s designated parity preferred stock (if any).
Preferred shares rank junior to the company’s indebtedness; senior creditors are paid before preferred holders in insolvency scenarios.

These priority features are part of why some investors buy preferred securities: they may receive higher priority for return of capital versus common shareholders, though they remain behind creditors.

Trading and ticker symbols

Because Boeing issued depositary shares representing fractional interests, those depositary shares were the instruments intended for listing and public trading. Different market data vendors may show symbols for the depositary series in different notations (for example variations like BA.PRA, BA-A, BA^A or similar vendor-dependent tickers are commonly used to represent depositary/preferred series). The official NYSE listing symbol chosen at the time of listing is the primary reference published in Boeing’s press release and the SEC prospectus supplement.

If you are checking "does boeing have preferred stock" to find a tradable instrument, look for the depositary share ticker for the Series A on exchange quote pages and broker platforms. Liquidity and intraday trading volume for depositary shares can differ substantially from the common stock, so market depth and bid‑ask spreads may be wider.

Note: where trading volume, market cap and live prices matter to your decisions, consult your trading platform or the exchange quote feed for the most current data. For direct corporate terms, consult the filings referenced below.

Regulatory filings and disclosures

Answers to precise legal questions about "does boeing have preferred stock" and the exact terms are in the public record. The primary legal sources are:

Boeing press releases announcing the offering (Oct 28–29, 2024).
The SEC prospectus, prospectus supplement and Free Writing Prospectus / Pricing Term Sheet that describe the offering terms, conversion mechanics and intended use of proceeds.
The Certificate of Designations filed by Boeing that sets forth the rights, preferences and limitations of the Series A preferred stock.

These documents are the definitive record. For citations in corporate or legal work, rely on the prospectus supplement, the Certificate of Designations and the SEC registration statements.

Why Boeing issued mandatory convertible preferred stock

Public statements in Boeing’s press release and explanations in the prospectus describe several issuer motivations that address the corporate financing rationale: raising equity-like capital while limiting immediate dilution to common shareholders, offering investors a fixed-rate dividend until conversion, and preserving financial flexibility for general corporate purposes.

Mandatory convertible preferreds can be attractive to issuers who wish to receive up-front capital with an agreed timeline for conversion into common equity. From a balance-sheet perspective, the instrument behaves like equity after conversion but initially provides a fixed dividend burden similar to debt interest payments. The structure allows Boeing to lock in capital now while pushing common share issuance to a future date.

If you asked "does boeing have preferred stock" because you are evaluating Boeing’s capital structure, this issuance is a material change: it adds a convertible equity instrument that will convert into common shares on the set conversion date, affecting future share count.

Investor considerations and risks

Investors asking "does boeing have preferred stock" should weigh a number of considerations before participating in or holding depositary shares:

Dividend risk: while the stated rate is 6.00% annually, payment depends on Boeing’s ability to make distributions and the terms in the Certificate of Designations. Review whether dividends are cumulative.
Credit/issuer risk: preferreds expose holders to Boeing’s credit and business risks. In adverse scenarios, dividends may be suspended and preferred holders may suffer losses similar to equity investors.
Conversion and dilution risk: mandatory conversion will result in issuance of common shares, increasing common share count and diluting existing common shareholders. The conversion ratio is formulaic and depends on market prices during a specified VWAP period; actual dilution depends on the final conversion rate.
Market liquidity: depositary shares often trade with lower liquidity and wider spreads than the underlying common stock. This can affect execution and realized pricing.
Ranking: while preferreds are senior to common in distributions, they remain behind secured and unsecured creditors in insolvency.
Tax treatment: treatment of dividends and conversion events for tax purposes can be complex and depends on investor circumstances and tax jurisdiction. Consult tax professionals for personalized guidance.
Event triggers: the offering documents list fundamental-change provisions and other events that may affect conversion mechanics. Know the triggers and remedies available to holders before buying.

This is not investment advice. The purpose is to enumerate risks and structural features so investors can make informed checks against the official documents.

Comparison with Boeing common stock

When people search "does boeing have preferred stock" they often want to know how that instrument compares to Boeing common stock. The main distinctions are:

Voting rights: Preferred shares often have limited or no voting rights compared with common stock. Common stockholders retain usual voting rights for corporate governance.
Dividend priority: Preferred shares typically have priority over common stock in dividend distributions and liquidation.
Fixed income-like payments: Preferreds generally offer stated dividends (here, 6.00% per annum until conversion) resembling fixed income, while common dividends are variable and discretionary.
Conversion: The Series A is mandatory-convertible into common shares on the specified date — a feature absent from plain common stock.
Risk/return profile: Preferred holders may receive steadier payments but have capped upside until conversion; after conversion, holders participate in common stock price movements.

Understanding these differences helps answer the market-substantive version of "does boeing have preferred stock" by clarifying how the instruments function differently in a portfolio.

Historical and subsequent developments

Terms like dividend dates, conversion ratios, listing tickers and other trading mechanics are time-sensitive. As of the issuance date, the SEC filings and Boeing press releases reflect the authoritative terms. Market pricing and liquidity for depositary shares evolve with trading activity and broader market conditions.

If you are tracking "does boeing have preferred stock" over time, check Boeing investor relations, current SEC filings and exchange quotes for the latest status on listing, trading symbol and market statistics. Regulatory filings will disclose material changes.

References and where to verify terms

As noted earlier, the primary references for precise legal and numeric terms are Boeing’s press releases announcing the offering (late October 2024), the SEC registration statement, prospectus supplement, Free Writing Prospectus / pricing term sheet, and the Certificate of Designations. These filings contain the exact dividend, conversion, capitalization and ranking language that govern the Series A preferred stock and the depositary shares.

For market-level data on trading tickers and historical dividend payments for the depositary shares, refer to reputable market data pages and exchange quote pages. For definitive legal verification, consult the SEC filings and the Certificate of Designations filed by Boeing.

As of Oct 29, 2024, according to Boeing press releases and the SEC prospectus supplement, the Series A Mandatory Convertible Preferred Stock carried a 6.00% dividend, a $1,000 liquidation preference per preferred share, depositary shares representing 1/20th of a preferred share, and a mandatory conversion date on or about Oct 15, 2027 with conversion ranges as set forth above.

Notes for editors and maintainers

Sources: Use the Boeing press releases (Oct 28–29, 2024) and the SEC prospectus/prospectus supplement/Free Writing Prospectus and Certificate of Designations as primary citations for all numeric and legal terms.
Keep time-sensitive items updated: dividend payment dates, final conversion ratio, ticker symbol and market liquidity change over time — update these fields after any company filings or exchange notices.
Distinguish instruments: Always differentiate between the whole preferred share (legal instrument) and the depositary share (publicly traded fractional interest) in copy.
Compliance: For platform promotion, direct readers to Bitget for trading and to Bitget Wallet when discussing custody. Avoid referencing or recommending other centralized exchanges.