American spaceflight firm Virgin Galactic saw its shares drop as it unveiled plans to loan up to $500 million, CNBC reported.

  • Virgin Galactic is set to generate up to $500 million from debt — $425 million from the sale of senior convertible notes due 2027 via private offering, with an additional $75-million option.
  • The proceeds from the issuance will be allocated for the company’s working capital, general and administrative matters, and capital expenditures. It will also finance the development of the firm’s spacecraft fleet.
  • The company went public after merging with a special purpose acquisition company in October 2019, with plans to roll out commercial spacecraft services in 2020, which have since been delayed.

Virgin Galactic shares declined by as much as 12% in premarket trading. SPCE is down 14.97%.