Virgin Galactic Holdings Inc (NYSE: SPCE) is trading lower Thursday after the company announced a proposed convertible senior notes offering.
Virgin Galactic intends to offer $425 million of convertible senior notes due 2027 in a private offering to institutional investors. The space tourism company also expects to grant the initial purchasers of the notes an option to purchase up to an additional $75 million principal amount of notes within 13 days from the date when the notes are first issued.
Virgin Galactic said it intends to use the proceeds from the offering to fund working capital, general and administrative matters and capital expenditures to accelerate the development of its spacecraft fleet in order to facilitate high-volume commercial service.
Virgin Galactic is a United States-based vertically-integrated aerospace company pioneering human spaceflight for private individuals and researchers. The company also manufactures advanced air and space vehicles.
SPCE Price Action: Virgin Galactic has traded as high as $62.80 over a 52-week period. It’s making new 52-week lows during Thursday’s session.
The stock was down 13.8% at $10.67 at time of publication.
Photo: courtesy of Virgin Galactic.
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