By Chibuike Oguh

NEW YORK Shares of Spirit AeroSystems dropped by nearly 15% on Wednesday after the embattled aerospace supplier unveiled offerings that aimed to raise up to $400 million to bolster its dwindling balance sheet.

Spirit plans to raise $200 million via the sale of Class A common stock as well as issue $200 million in convertible debt set to mature in 2028, the company said after the closing bell on Tuesday.

Its shares fell to as low as $20.98 on Wednesday following the news and are now down more than 25% year-to-date. The median price target of the 18 analysts covering Spirit is $29, up from $26 in October, and their current recommendation is "buy", according to LSEG data.

Spirit is a major supplier of large aircraft parts such as wings and fuselages for manufacturers including Boeing and Airbus. The company has been struggling with persistent production quality problems that have slowed aircraft deliveries.

Last week, Spirit projected higher-than-expected cash burn for 2023, forcing it to slash anticipated deliveries of 737 fuselages. Free cash burn will be between $275 million and $325 million for 2023, up from a previous range of between $200 million to $250 million.

The company's cash balance stood at $374.1 million, while its debt reached $3.8 billion at the end of the third quarter.

In October, Spirit named former Boeing executive Patrick Shanahan as interim chief executive, replacing Tom Gentile, who stepped down following a series of industrial difficulties. Shanahan is a former U.S. deputy secretary of defense.

(Reporting by Chibuike Oguh in New York; editing by Lance Tupper and Sharon Singleton)