Joby Aviation has announced a proposed financing package of up to $1 billion through a combined offering of convertible senior notes due 2032 and common stock.
The company said the proceeds will be raised through two separate public offerings: a convertible senior unsecured bond issue, and a common equity offering, with final sizing and pricing to be determined at launch.
In parallel, Morgan Stanley will conduct a so-called delta offering of borrowed Joby shares to facilitate hedging by note investors. Joby will not receive proceeds from this transaction.
The convertible notes will mature on 15 February 2032 and will pay semi-annual interest, with the coupon and conversion price to be set at pricing. The notes will be redeemable from February 2029, subject to share price performance, and will include standard conversion and fundamental change provisions.
Joby also plans to enter into capped call transactions with financial counterparties to reduce potential equity dilution from conversion of the notes.
Joby said net proceeds from the bond and equity offerings will be used to: fund capped call transactions, support aircraft certification and manufacturing, prepare for commercial operations, and for general corporate and working capital purposes.
Morgan Stanley, Allen & Company, and BofA Securities are common stock offering bookrunners.
Convertible notes bookrunners are Morgan Stanley, BofA Securities, Allen & Company, and Goldman Sachs. ICR Capital is financial advisor.
The offering is subject to market conditions and pricing has not yet been completed. No closing date was specified.