Virgin Galactic (SPCE) said it has reached agreements with certain holders of its 2.50% convertible notes due 2027 to repurchase and retire about $355 million of that debt.
The transactions are expected to reduce the company’s total debt by around $152 million and push most remaining debt maturities into late 2028, which the company says “creates better alignment with planned growth in Spaceline commercial operations.”
The company plans to sell for cash about $46 million of shares and pre-funded warrants through a registered direct offering. At the same time, it will raise another $203 million in a private placement by issuing new 9.80% first-lien notes due 2028 and additional stock purchase warrants.
At closing of the transactions, Virgin Galactic (SPCE) will use the cash consideration from the offerings to repurchase around $355 million of its existing convertible notes. The transactions are expected to close around December 18, 2025, and is subject to customary closing conditions.
SPCE –2.4% premarket to $4.44
Source: Press Release