Company banner on the New York Stock Exchange on March 28, 2022.
Terran Orbital, a spacecraft manufacturer, began trading on the New York Stock Exchange on Monday after the closure of the SPAC merger, and was marketed in orders worth more than $ 200 million.
Terran trades under the name LLAP – a reference to Star Trek, saying it is “long lived and prosperous” with shares previously held under the special-purpose acquisition company Tailwind Two Acquisition Corp.
Shares of Terran fell about 13% in afternoon trading.
Terran is in line with the trend of space companies being marketed through SPAC agreements, such as Virgin Galactic, Astra, Rocket Lab, Planet and more. But Marc Bell, founder and CEO of Terran, told CNBC that he believes his company’s foundation is different.
“We look at a lot of those space SPACs that have been released and a lot of them were not businesses that needed to be made public,” Bell said. “We, on the other hand, have real revenue, real pipeline, real backlog, real customers.”
Closing its merger has resulted in $ 255 million for Terran, $ 29.4 million for Tailwind Toro and $ 50.8 million for a PIPE round – or private equity investment – including investors from AE Industrial Partners, Beach Point Capital and Lockheed Martin. The remaining capital came from $ 175.3 million in financing debt from Francisco Partners, Beach Point Capital and Lockheed Martin.
“We’re using that money to expand, basically hiring and training new people and adding new facilities,” Bell said.
Terran set aside $ 25 million in 2020, up from $ 40 million last year. The company has contracts to build dozens of satellites for its customers, including NASA and the Pentagon, from $ 68 million last year to more than $ 200 million.
Headquartered in Boca Raton, Florida, the company has announced plans to expand its satellite manufacturing capacity by building a 660,000-square-foot facility near Cabe Canaveral and renting a 60,000-square-foot facility in Irvin, California. With more than 300 employees, the company relies on the consolidation of two former subsidiaries, Tyvak satellite manufacturers and PredaSAR imaging specialist.
“It’s our only manufacturing business because it’s a really repetitive revenue business,” Bell said. “It’s much cheaper for the U.S. government to build and continue to refresh a satellite constellation, and to keep it refreshed with current technology, then build a ‘juicy target’ in space.”
Terran is building a spacecraft for other customers and is working on its own 96 Earth satellite imagery system, which Bell described as “Earth Observation 3.0”. The satellites would combine two types of imaging technology, an optical and synthetic aperture radar, Bell said, allowing Terran to “overlay data” and provide customers with more in-depth analysis.
Terran Orbital LLAP spacecraft manufacturer begins trading on NYSE
Source link Terran Orbital LLAP spacecraft manufacturer begins trading on NYSE