Terran Orbital to Go Public: $1.58B SPAC Merger

Terran Orbital to Become Publicly Traded via SPAC Merger

Terran Orbital, a prominent small satellite manufacturer, is set to become a publicly listed company through a merger agreement with Tailwind Two Acquisition Corp, a special purpose acquisition company (SPAC).

The resulting enterprise value following the transaction is estimated at $1.58 billion. This merger is projected to provide the company with approximately $470 million in capital.

Funding Breakdown

A significant portion of the funding, totaling $345 million, will be contributed by Tailwind Two. Furthermore, a $50 million Private Investment in Public Equity (PIPE) will be provided by investors including AE Industrial Partners, Beach Point Capital, Daniel Staton, Lockheed Martin, and Fuel Venture Capital.

Additional financial commitments include $75 million from Francisco Partners and Beach Point Capital. The company may also access up to $125 million in debt financing from Francisco Partners and Lockheed Martin upon the completion of the merger.

SPACs Remain a Popular Avenue for Space Companies

Terran Orbital’s decision to pursue a SPAC merger underscores the continued appeal of this method for space startups seeking capital and public market access.

Numerous companies within the space sector have utilized SPACs as a pathway to go public, including Virgin Orbit, Planet, Redwire, BlackSky, Spire Global, Satellogic, Rocket Lab, Momentus, and Astra, collectively raising billions of dollars.

Focus on Government Contracts and Manufacturing

Terran Orbital functions as a contract manufacturer, specializing in the design, construction, and engineering of satellites, with a primary focus on serving the U.S. government.

According to CEO Marc Bell, approximately 95% of the company’s revenue is derived from contracts with NASA and the Department of Defense.

Expansion of Manufacturing Capabilities

The company announced in September plans to establish the world’s largest space vehicle manufacturing facility on Florida’s Space Coast, representing a $300 million investment.

This 660,000-square-foot facility will possess the capacity to produce 1,000 complete satellites and over 1 million individual satellite components annually – an unprecedented production volume within the space industry.