Virgin Galactic will redeem up to $30.5 million of its 9.80% First Lien Senior Secured Notes. The redemption is planned for June 10, 2026, ahead of schedule. The company will issue common stock shares to noteholders instead of cash. This action will dilute existing shareholders but conserves cash.
The redemption addresses mandatory principal payments due in September 2026 and December 2027. If fully completed, the transaction eliminates further principal payments on these notes until March 2028. The company states this move is part of its capital management strategy. It prepares for commercial operations, expected in the fourth quarter of 2026.