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Virgin Galactic Announces Capital Realignment Transactions Related to 2027 Convertible Notes
ORANGE COUNTY, Calif., December 09, 2025--Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or the "Company") announced today that it has entered into separate, privately negotiated agreements (collectively, the "Transactions") with a limited number of certain holders of its 2.50% convertible senior notes due 2027 (the "Existing Convertible Notes"), whereby the Company plans to repurchase and retire approximately $355 million in aggregate principal amount of its Existing Convertible
About this update from Virgin Galactic Holdings, Inc.
[{"type":"list","items":[{"val":[{"type":"text","content":"Final maturity of New Notes extended to December 31, 2028 to better align debt repayment schedule with planned growth of Spaceline commercial operations","length":152,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Capital realignment reduces outstanding principal amount of indebtedness to $273M from $425M","length":92,"tagName":"p","attribs":{}}]}],"tagName":"ul","bulletedList":true,"length":244,"olType":false},{"type":"text","content":"ORANGE COUNTY, Calif., December 09, 2025--(BUSINESS WIRE)--Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or the "Company") announced today that it has entered into separate, privately negotiated agreements (collectively, the "Transactions") with a limited number of certain holders of its 2.50% convertible senior notes due 2027 (the "Existing Convertible Notes"), whereby the Company plans to repurchase and retire approximately $355 million in aggregate principal amount of its Existing Convertible Notes. The Company expects these Transactions, taken together, to reduce its indebtedness by approximately $152 million while extending the maturity for the majority of its remaining debt to the second half of 2028, which the Company believes creates better alignment with planned growth in Spaceline commercial operations.","length":881,"tagName":"p"},{"type":"text","content":"The Company will issue and sell for cash, in a registered direct offering, an aggregate of approximately $46 million of (i) shares (the "Shares") of its common stock, par value $0.0001 per share (the "Common Stock) and (ii) pre-funded warrants (the "Pre-Funded Warrants") to purchase shares of its Common Stock (collectively, the "Registered Offering"), in each case priced by reference to a VWAP price over a seven trading day period commencing today. Concurrently with the Registered Offering, the Company will issue and sell for cash, in a private placement exempt from registration (i) approximately $203 million aggregate principal amount of a new series of its 9.80% First Lien Notes due 2028 (the "New Notes") pursuant to the terms of an indenture, by and among the Company, the subsidiary guarantors party thereto and Wilmington Savings Fund Society, FSB, as trustee and collateral agent (t...