Virgin Galactic Slides on Debt Restructuring
By Elias Schisgall
Virgin Galactic shares slid after the aerospace company said it would issue shares and take on new debt in order to repurchase $355 million in convertible senior notes that would have come due in 2027.
Shares were down 19% to $3.71 Tuesday morning. The stock has lost 37% of its value in the past year.
The company said it was issuing $46 million in new shares in a registered offering. It will also raise roughly $203 million by selling notes due 2028 with a 9.8% interest rate in a private placement.
Virgin Galactic said proceeds from these transactions would fund the repurchase of $355 million of its existing convertible notes. It said it had entered repurchase agreements with a limited number of holders of the existing notes.
It said taken together, the transactions would reduce its indebtedness by about $152 million and extend the maturity for the majority of its debt until 2028.
The transactions are expected to close on Dec. 18.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
December 09, 2025 10:43 ET (15:43 GMT)
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