Virgin Galactic announced plans to raise up to $500 million in debt.
“The company intends to use the net proceeds from the offering to fund working capital, general and administrative matters and capital expenditures to accelerate the development of its spacecraft fleet,” Virgin Galactic said in a statement.
The space tourism company intends to raise $425 million from the sale of 2027 convertible senior notes through a private offering, with an additional $75 million option also expected to be granted to buyers.
Starting Wednesday (Feb. 16), aspiring space tourists can once again book a trip to the final frontier with Virgin Galactic.
The company announced Tuesday (Feb. 15) that it will temporarily reopen its waiting list for customers ahead of providing commercial service. The seat deposit is $150,000, and the total ticket price is $450,000.
As of November 2021, Virgin Galactic had a reported 700 or so customers in its pool, with the plan to start flying them on commercial flights in late 2022. At the time, Virgin Galactic said it planned to have 1,000 people ready for flights by then, and the company appears to be sticking to that timeline.
Billionaire investor Chamath Palihapitiya, who was one of the executives to help take Virgin Galactic public, has stepped down as chariman of the company.
The company didn’t say why Palihapitiya was leaving. Evan Lovell, the chief investment officer of Vigin Group, will take his place as interim chairman.
Virgin Galactic, founded by Virgin Group’s Richard Branson, went public through a special purpose acquisition company in 2019, closing its first day of trading at $11.50. Shares soared as high as $62.80 in February of 2021 on investors’ excitement about the potential of space tourism and commercial space travel.
Who notes the company said last year that it was going to need to upgrade its flight capacity from proof-of-concept test to a commercially viable fleet, and that was going to be capital intensive so he doesn’t know why the market was so shocked…
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