QUANTUMONLINE.COM SECURITY DESCRIPTION: Boeing Co 6.00% Depositary Shares each representing a 1/20 interest in a share of the Series A Mandatory Convertible Preferred Stock, liquidation preference $50 per share. The preferred shares are mandatorily convertible on 10/15/2027 into a variable number of Boeing Co (NYSE: BA) common shares based on the then current price of the common shares for 20 consecutive trading days immediately prior to the conversion date. The conversion settlement rate will be 0.2914 shares per unit if the then current market price is greater than $171.5854 and 0.3497 shares per unit if the market price is equal to or less than $142.9797. For market prices between those values the settlement rate will be $50 divided by the market value. The last reported sale price of the common stock on 10/28/2024 was $150.69 per share. The depositary shares are convertible in lots of 20 at any time at the holder’s option into 0.2914 shares of common stock per depositary share. Cumulative distributions of 6.00% per annum ($3.00 per annum or $0.75) per quarter) will be paid quarterly on 1/15, 4/15, 7/15 & 10/15 to holders of record on the record date on 1/1, 4/1, 7/1 & 10/1 prior to the payment date (NOTE: the ex-dividend date is the record date).
Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders (see page S-58 of the prospectus for further information).
If a Fundamental Change occurs on or prior to 10/15/2027 holders of the units will have the right to convert the units into common stock at the conversion rate plus a fundamental change dividend make-whole amount (see prospectus for further information).
This security was not rated by Moody’s or S&P at the time of its IPO. In regard to the payment of distributions and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
