Joby Aviation wants to raise $1B through notes and stocks

A senior note is a type of bond that would take precedence over other debts should a company declare bankruptcy.

“The aggregate proceeds from the offerings are anticipated to be $1 billion,” Joby said in a release.

Joby said Morgan Stanley will offer a number of shares of Joby’s common stock.

The debt and shares are being issued just as Joby enters what will likely be a capital-intensive phase of its business, as it buys a new manufacturing center in Vandalia, makes propeller blades in Dayton and seeks to ramp up production of its electric vertical take-off and landing vehicles, shifting much of that work from California to Ohio.

Joby Aero, a subsidiary of Joby Aviation, agreed to buy a Capstone Way building in Vandalia from Capstone STS, LLC, a Texas limited liability company, for $61.5 million, according to an 8-K regulatory document Joby filed with the U.S. Securities and Exchange Commission last month.

Credit: Bryant Billing

Credit: Bryant Billing

Meanwhile, Cathie Wood, founder and chief executive of ARK Invest, late last week bought more than 781,000 shares of Joby stock (NYSE: JOBY) worth more than $10 million, according to national reports.

Wood has been known for investing in companies she believes are especially disruptive and poised for success, such as Tesla and Zoom.

Shares of Joby were trading at about $10.57 mid-day Monday, up about a cent. The volatile stock has a 52-week range of $4.96 to $20.95.

This is a crucial year for Joby, positioning itself for eVTOL production in Vandalia and Dayton and hoping for Federal Aviation Administration certification of its signature aircraft this year.

Leaders of Joby are trying to capitalize on a moment they believe is opportune, when federal leaders are signaling new openness to the kinds of aircraft Joby makes — electric vehicles that quietly lift off like helicopters, cruise like conventional winged airplanes and land again like helicopters.

Joby is eyeing opportunities in civilian markets in the United States and in other nations, primarily transporting passengers to urban airports. But the company has also worked with the Air Force on uses.