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Virgin Galactic inventory falls after plans to lift $500 million in debt

Spacecraft VSS Unity lands on the runway at Spaceport America in New Mexico after the corporate’s fourth spaceflight check on July 11, 2021.

Virgin Galactic

Shares of Virgin Galactic fell in buying and selling on Thursday after the corporate introduced plans to lift as much as $500 million in debt.

“The corporate intends to make use of the web proceeds from the providing to fund working capital, basic and administrative issues and capital expenditures to speed up the event of its spacecraft fleet,” Virgin Galactic mentioned in a press launch.

The corporate intends to lift $425 million from the sale of 2027 convertible senior notes by a personal providing, with a further $75 million choice additionally anticipated to be granted to patrons.

Virgin Galactic inventory fell as a lot as 16% in buying and selling from its earlier shut of $12.37.

Sir Richard Branson’s Virgin Galactic went public via a merger with a special purpose acquisition company, or SPAC, from Chamath Palihapitiya in October 2019. Whereas the area tourism firm mentioned throughout its debut that it deliberate to start flying prospects in 2020, delays to its spacecraft testing and growth have steadily pushed that schedule again.

After launching Branson and three different firm staff on a test spaceflight in July 2021, additional delays have pushed Virgin Galactic’s starting of economic service to late this yr on the earliest.

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