Terran Orbital, a leading manufacturer of small satellites, goes public in a merger with Special Purpose Acquisition Company (SPAC) Tailwind Two Acquisition Corp. The deal has a post-trade enterprise value of $ 1.58 billion and will provide the company with approximately $ 470 million. .
Of these funds, $ 345 million will come from the contribution of Tailwind Two, plus $ 50 million from PIPE provided by AE Industrial Partners, Beach Point Capital, Daniel Staton, Lockheed Martin and Fuel Venture Capital. An additional $ 75 million has been pledged by Francisco Partners and Beach Point Capital, and the company may have access to up to $ 125 million of debt commitments from Francisco Partners and Lockheed Martin upon closing of the transaction.
Terran’s announcement is a reflection of the fact that space startups are still looking at SPAC mergers as a way to raise funds and go public. Agreements with blank check companies have become a popular route to space industry public procurement; Virgin Orbit, Planet, Redwire, BlackSky, Spire Global, Satellogic, Rocket Lab, Momentus and Astra are among the space companies that have raised billions through this financial vehicle.
Terran Orbital is a subcontractor that designs, builds and engineers satellites primarily for the US government. About 95% of Terran’s work is related to NASA and the Department of Defense, CEO Marc Bell told TechCrunch in an interview earlier this year.
The company will open the world’s largest space vehicle manufacturing plant on Florida’s space coast with a $ 300 million investment, it announced in September. The 660,000 square foot facility will have the capacity to manufacture 1,000 complete satellites and over one million satellite components per year, a volume unprecedented in the space industry.
In addition to making satellites, Terran Orbital also aims to operate its own Earth observation constellation and provide satellite imagery as a service. In a statement, Bell called it the new SaaS: âsatellites as a serviceâ.
The transaction, which has already received unanimous approval from the boards of directors of Terran Orbital and Tailwind Two, is expected to close in the first quarter of 2022.