- Rivada Space Networks is in the final stages of closing funding for Terran’s $2.4 billion mega-constellation project.
- Terran Orbital CEO Marc Bell mentioned potential delays in payment due to necessary modifications on the contract with Rivada.
Unsettled situation
In a recent internal company meeting, Terran Orbital‘s CEO, Marc Bell, delivered a mixed message of hope and concern as the aerospace company awaits a crucial payment from its major client, Rivada Space Networks. The impending funding decision for a $2.4 billion mega-constellation project appears to hold the key to Terran’s immediate future, with uncertainties casting a shadow over the company’s stability.
Terran, actively pursuing other high-value contracts, acknowledges that the $2.4 billion agreement with Rivada represents its most substantial secured contract to date. However, the journey to this significant milestone has not been without obstacles. A revision to the full-year financial outlook was necessitated earlier this quarter due to a delay in Rivada’s incremental payment of $180 million toward the total contract award.
During the December 19 meeting, a recording of which was obtained by TechCrunch, Bell shared details of a recent conversation with Rivada CEO Declan Ganley and expressed cautious optimism. “I had dinner with Declan in DC last week. He told me they expect to close their funding tomorrow. He showed me the documents. I saw them, I read them. He texted me this morning and now maybe Thursday, Friday. As long as it’s by Christmas, I’ll be happy. Nothing wrong with getting a good Christmas present,” Bell said.
Despite the positive outlook, both companies have refrained from making official announcements on the financing. Unanswered inquiries intensify concerns about the uncertainty surrounding Terran’s financial future. Bell acknowledged that even if Rivada secures funding, contract modifications may be necessary, potentially leading to delays in payment terms and public announcements.
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“As long as it’s by Christmas, I’ll be happy. Nothing wrong with getting a good Christmas present.”
Marc Bell,Terran Orbital’s CEO
More about Terran Orbital
In a November investor call, Bell expressed surprise at Rivada’s funding and payment delays, revealing that the funding source is “a large sovereign,” likely a sovereign wealth fund. Despite these challenges, Terran, with a reported backlog of $2.6 billion, remains confident in its ability to generate $130 million in revenue this year—a notable increase from the $94 million recorded in 2022.
Terran is actively pursuing additional high-value contracts, including involvement with the Space Development Agency’s “Proliferated Warfighter Space Architecture.” Having already delivered satellites for the initial tranche of the constellation, the company is currently engaged in the construction of 42 satellite buses for Tranche 1 and an additional 32 buses for Tranche 2. Bell hinted at the possibility of Terran becoming the prime contractor for the “Gamma” variant of the Tranche 2 satellites, a strategic move that could significantly impact the company’s standing in the industry.
As Terran Orbital grapples with potential delays in payment and an uncertain financial outlook, the company remains resilient, actively exploring new opportunities to secure its position in the competitive space technology sector. The fate of Terran Orbital appears intricately tied to the outcome of Rivada Space Networks’ funding decision, leaving stakeholders anxiously awaiting a resolution that could shape the trajectory of the company in the coming months.
