On March 28, 2022, a Terran Orbital banner hung above the New York Stock Exchange.
Terran Orbit
Lockheed Martin Buying Terran OrbitThe company announced Thursday it reached a deal with the defense giant to take the troubled spacecraft maker private.
Under the agreement, Lockheed will acquire Terran at an enterprise valuation of nearly $450 million (below) Lockheed’s previous bid Nearly $600 million in March.
Lockheed will acquire Terran Orbital’s outstanding common stock for 25 cents per share in cash. In addition, Lockheed will repay Terran’s debt and establish a $30 million capital facility to sustain the company’s operations during the closing of the transaction.
Terran’s stock closed at 40 cents a share on Wednesday.
The deal, expected to close in the fourth quarter, will help Terran avoid the cash and debt cliff the company faces. Terran reportedly had less than $15 million in cash reserves as of the end of July. a filing On Monday, the company still had about $300 million in debt.
small spacecraft manufacturer Listed Go away Special purpose acquisition company to acquire in early 2022 Valuation: US$1.8 billion. Like several other space stocks that have come public over the past few years, the pre-profit company has been hit hard by changes in the market risk environment.
Lockheed Martin is already a significant shareholder in Terran Orbital and bought a stake during the company’s SPAC process And again at the end of 2022. Lockheed Martin is also a significant customer of Terran, accounting for 70% of Terran’s second-quarter revenue of $30.4 million.
18 months ago, Terran signed a blockbuster spacecraft production contract with future satellite communications operator Rivada Space Networks. 300 satellites worth $2.4 billion. But the deal has yet to generate meaningful funding for Terran, with only $6.2 million reportedly recognized from the Rivada deal in the first half of this year.
On Monday, Terran said it would remove the Rivada deal from its total contract backlog, which reduced the backlog by 88% from $2.7 billion to $312.7 million. Of the non-Rivada orders, 91% of Terran’s contracts are for “Lockheed Martin-related projects.”
