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Stock impact report

Virgin Galactic Restructures Its Debt. How Bad Is This News, Exactly? [Yahoo! Finance]

Virgin Galactic Holdings, Inc. (SPCE) 
Company Research Source: Yahoo! Finance
10 stocks we like better than Virgin Galactic › The news struck like a thunderbolt, subtracting 16% from Virgin Galactic 's (NYSE: SPCE) market capitalization in a matter of minutes. On Dec. 9, space stock Virgin Galactic announced what it called a capital realignment , a plan to: Sell $46 million worth of new stock (that's about 12.1 million shares at the current share price), with attached warrants to buy stock Place $203 million worth of "first lien notes" due in 2028 and paying 9.8% interest. Sweeten the deal on the debt placement by awarding lenders even more warrants to purchase stock "at an exercise price of 155% of the purchase price of the Shares." Investors revolted, and a stock that had closed the previous day at $4.55 per share ended up trading closer to $3.81. Over the next three weeks, shares of the space stock continued to slide, closing last week at just $3.16 per share, more than 30% below its pre-"capital realignment" price. But was the news really tha Show less Read more
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