The shares of Virgin GalacticAfter the announcement that it would be raising up to $500,000,000 in debt, trading fell on Thursday

Virgin Galactic stated in a press release that the company plans to use net proceeds of the offering for working capital, administrative and capital matters as well as capital expenditures to speed up the development and production of its spacecraft fleet.

Company plans to raise $425m from 2027 convertible senior notes via a private sale. Buyers will also have an opportunity to purchase additional $75M.

Virgin Galactic stock declined as much as 12 percent in premarket trades from $12.37 at its previous close.

Sir Richard Branson’s Virgin Galactic went public via a merger with a special purpose acquisition companySPAC (or ) from Chamath Palihapitiya in October 2019. In October 2019.

Branson, along with three employees from the company, was launched on April 1, 2007. test spaceflight in July 2021Virgin Galactic has been delayed further, causing it to be late for commercial service.