Virgin Galactic, Inc. has commenced a private offering of $425 million of its senior records due 2027. The Company plans to grant the opening buyers an option to purchase additional notes equal to the amount of the notes that the first buyers purchased. The notes will have a semi-annual interest rate of 12%, which is due on February 1, 2027. The notes will be convertible at any time before November 1, 2026. And the company will pay or deliver a combination of cash, shares of Virgin Galactic, or both.
The last report on common stock sale will be over 130%, meaning that the notes will be able to be redeemed by the noteholders in parts and may as well be sold in whole depending on the sale demand. Though the time deadline must be met before the transactions will come in action. The company uses capped call transactions to meet exclude the possibility of any fails during the conversion. This method allows the company to call off certain payments upfront.