Virgin Galactic to offer $425 million of convertible bonds that mature in 2027

Virgin Galactic Holdings Inc. SPCE, -0.16% said Thursday it is readying to connection $425 cardinal of convertible bonds that mature successful 2027 successful a backstage offering. The institution plans to usage the proceeds of the woody to money moving capital, for wide and administrative matters and capex to beforehand the improvement of its spacecraft fleet for high-volume commercialized service. It volition besides usage portion of the woody to money capped telephone transactions that purpose to minimize dilution, erstwhile the bonds are converted to stock. Shares were down 10% premarket and person fallen 55% successful the past 12 months, portion the S&P 500 SPX, +0.28% has gained 24%.