Joby Aviation prices $600 million convertible notes and stock offering

Joby Aviation Inc. (NYSE: JOBY) announced the pricing of concurrent public offerings totaling more than $1.2 billion, including $600 million in convertible senior notes and approximately $600 million in common stock.

The electric air taxi developer priced 52.8 million shares of common stock at $11.35 per share, generating approximately $600 million. The company also priced $600 million in 0.75% convertible senior notes due 2032. Both offerings represent increases from the previously announced combined offering size of $1 billion.

The convertible notes will mature on February 15, 2032, and accrue interest at 0.75% annually. The initial conversion rate is set at 70.4846 shares per $1,000 principal amount of notes, representing a conversion price of approximately $14.19 per share. This represents a 25% premium over the $11.35 offering price.

Morgan Stanley is conducting a separate delta offering of 5.3 million shares borrowed from third parties to facilitate hedging transactions by note investors. All offerings are scheduled to settle on February 2, 2026.

Joby estimates net proceeds of approximately $576 million from the stock offering and $582.9 million from the note offering, after deducting fees and expenses. The company plans to use approximately $55 million from note proceeds to fund capped call transactions and the remainder for certification, manufacturing efforts, commercial operations preparation and general corporate purposes.

The company entered into capped call transactions with underwriters and affiliates with an initial cap price of $22.70 per share, representing a 100% premium over the delta offering price.

Morgan Stanley, Allen & Company and BofA Securities serve as joint book-running managers for both offerings, with additional co-managers including Barclays, Needham & Company, Canaccord Genuity, H.C. Wainwright and Raymond James.

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