Terran Orbital goes public via SPAC at a valuation of $ 1.8 billion


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Small satellite maker and operator Terran Orbital is gearing up to go public, making it the latest in a flurry of space companies to announce a SPAC merger this year.

Terran merges with the special purpose acquisition company Tailwind Two Acquisition Corp., a SAVS that trades under the symbol TWNT. The deal gives Terran a stock valuation of $ 1.8 billion and is expected to close in the first quarter of 2022, which will result in Terran listing on the New York Stock Exchange under the symbol LLAP.

A special purpose SPAC or acquisition company raises capital through an initial public offering and uses the proceeds to buy a private company and go public.

“Terran Orbital is the largest independent manufacturer of small satellites in the United States,” Terran Orbital co-founder and CEO Marc Bell said in a statement. “Through our innovative, high volume manufacturing of small satellites, we will be able to deliver emerging technologies into space faster, more affordably, and with greater reliability than anyone else.”

Tailwind Two shares were up 1% from its previous close of $ 9.89.

Based in Boca Raton, Florida, the company last month announced plans to develop a 660,000 square foot manufacturing facility near Cape Canaveral, Florida. Terran says the facility will cost $ 300 million to build and will be able to produce more than 1,000 spacecraft per year when operational.

The deal is expected to add roughly $ 330 million in cash to Terran’s growth, with funds coming from those raised by Tailwind Two as well as a $ 50 million PIPE fundraising round – or a private investment in public stocks. – which included investors AE Industrial Partners, Beach Point Capital and Lockheed Martin.

Terran also plans to build its own earth imaging satellite system, with 96 spacecraft in orbit. The company plans to launch the first two of its satellites next year and have the full constellation in orbit by 2026.

The company had $ 25 million in revenue last year, all coming from its satellite solutions business, and expects that figure to reach $ 35 million this year. The company expects to be profitable on an Adjusted EBITDA basis by 2023 and forecasts revenue of $ 2.6 billion by 2026, of which $ 918 million is from satellite solutions and 1, $ 7 billion from its terrestrial imaging business.

Terran is joining a trend of space companies going public through SPAC deals, with Virgin Galactic, the first of the recent generation in 2019. Several have closed and started trading, including Astra, AST SpaceMobile, Rocket Lab, Spire Global, BlackSky , Momentus and Redwire. – with others who have entered into merger agreements – including Planet Labs, Virgin Orbit and Satellogic.

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