Virgin Galactic Holdings Inc.
said Thursday it is planning to offer $425 million of convertible bonds that mature in 2027 in a private offering. The company plans to use the proceeds of the deal to fund working capital, for general and administrative matters and capex to advance the development of its spacecraft fleet for high-volume commercial service. It will also use part of the deal to fund capped call transactions that aim to minimize dilution, once the bonds are converted to stock. Shares were down 10% premarket and have fallen 55% in the last 12 months, while the S&P 500
has gained 24%.
(this story/news/article has not been edited by PostX News staff and is published from a syndicated feed)