Terran Orbital appears to be nearing a major financial milestone, as hinted at by CEO Marc Bell in a company-wide meeting. The mega-constellation that Terran plans to build at a cost of $2.4 billion is almost ready to be funded thanks to funding that Rivada Space Networks is closing on. These revenues currently account for the great majority of Terran’s backlog.
Although Terran is actively seeking more profitable contracts that might involve billions of dollars in work, its $2.4 billion agreement with Rivada represents the largest deal it has obtained to date. Terran was forced to modify its financial projections for the entire year earlier this quarter due to Rivada’s failure to pay an additional $180 million toward the total contract award.
During the staff meeting on December 19, the CEO and chair of Terran shared the news with the employees.
During the meeting, Bell said to the team, “I had dinner with [Rivada CEO] Declan Ganley last week in DC,” and TechCrunch was able to secure a recording of it. “He informed me that they anticipate closing their financial deal tomorrow. He presented the materials to me. I read them and I saw them. This morning, and possibly Thursday or Friday as well, he texted me. […] I’ll be content as long as it’s by Christmas. There is nothing wrong with receiving a quality Christmas gift.
In February of this year, Terran and Rivada, a German subsidiary of the American company Rivada Networks, signed a $2.4 billion contract for Terran to manufacture 300 satellites for the mega-constellation. Starting in April 2025, Rivada and SpaceX will launch the satellites under a separate agreement.
Naturally, Christmas has passed, and neither business has released any information regarding the funding to the public. Both were contacted by TechCrunch for comments, but as of press time, neither had replied. Later in the conference, Bell stated that the two parties would need to modify their contract, which might postpone payment terms and public disclosures, even in the event that Rivada closes the fundraising.
Bell stated of Ganley, “He’s being very transparent to me and so I have no reason not to believe him.” “Unfortunately, the check is being written to him by someone else; he is not the one writing it. However, I have to presume that we will get paid if he does. However, we must perform a contract mod. Given that we need to make a modification to the contract, it is the one item that could cause us delays. […] However, we will receive payment on the outstanding $9 million amount. However, like everyone else, I want to receive the big check since it will have a significant positive impact on our share price and other aspects of our world.