Joby Aviation drops after boosted $1.2 bln stock, convertible bonds sales

Electric air taxi maker Joby Aviation's JOBY.N shares down 11.2% premarket to $11.87 after above-target capital raise

Santa Cruz, California-based JOBY announces pricing public offerings of $600 mln 0.75% convertible bonds (CBs) due 2032 and ~52.9 mln shares at $11.35 for $600 mln gross proceeds

Combined deal size of the concurrent offerings increased from $1 bln

Equity offering price represents 15.1% discount to stock's last close

Initial conversion price on the CBs set at $14.19, 25% above the equity offering price

Morgan Stanley borrowed ~5.3 mln shares from third parties to facilitate delta hedging transactions by some CBs investors

Co intends to use net proceeds from the offerings to fund certification and manufacturing efforts, prepare for commercial operations and for general purposes, and fund cost of capped call transactions

Morgan Stanley, Allen & Co and BofA joint bookrunners for equity offering; Goldman Sachs joins the trio as a joint bookrunner for the CBs offering

JOBY has ~911.8 mln shares outstanding

Through Weds close, shares up 60% over the past year

Avg rating among 11 analysts is "hold"; median PT $12.50, per LSEG data