Terran Orbital Receives Milestone Payment for 300 Spacecraft, $2.4 Billion Contract with Rivada Space Networks

Terran Orbital Corporation (NYSE: LLAP) (“Terran Orbital” or “the Company”), a global leader in satellite-based solutions, today announced the receipt of a further milestone payment alongside completion of the screening of the industrial partners as well as trade studies that will support the acquisition process and system engineering for the Company’s 300 spacecraft, $2.4 billion contract with Rivada Space Networks.

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Terran Orbital Receives Milestone Payment for 300 Spacecraft, $2.4 Billion Contract with Rivada Space Networks (Image Credit: Rivada)

Terran Orbital, through its wholly owned subsidiary Tyvak Nano-Satellite Systems, Inc. (“Tyvak”), will design, build, and deploy 288 low-Earth orbit satellites and 12 “spare” satellites to produce a total of 300 spacecraft weighing approximately 500 kg a piece. Terran Orbital will also integrate the communication payload and perform the final satellite assembly, integration, and test. Terran Orbital will develop portions of the ground segment as well.

With the official onboarding of the partners now complete, Rivada has taken another important step toward the installation of its constellation. The deployment will begin with the launch of a Terran Orbital-developed demonstrator mission by the end of 2024, consisting of four satellites across two orbital planes and including regenerative payloads and laser communication terminals on the satellites. The “Demonstrator Mission” (not part of the later 300 satellite LEO constellation) will support the verification of gateway-less transmissions from one user to another, routed within a small network of four satellites in space. Mission operations for the on-orbit satellites will be conducted from Terran Orbital’s state-of-the-art satellite operations control center.

“Working with Rivada has been a pleasure,” said Terran Orbital Co-Founder, Chairman, and Chief Executive Officer Marc Bell. “Terran Orbital looks forward to proceeding with the program as scheduled as we continue refining the Rivada spacecraft design.”

Declan Ganley, Chief Executive Officer of Rivada Space Networks, commented: “We are delighted to be moving ahead rapidly with Terran Orbital and our industrial partners to take our constellations from concept to reality.” Ganley added: “The additional ’Demonstrator Mission’ in 2025 will ensure that customers can test the operational environment of our unique laser-connected data network ahead of the rollout of the main constellation and provide RSN with an operational test bed for early ground segment automation to build up best practices for operating our larger fleet.”

About Terran Orbital

Terran Orbital is a leading manufacturer of satellite products primarily serving the aerospace and defense industries. Terran Orbital provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations, and on-orbit support to meet the needs of the most demanding military, civil, and commercial customers. Learn more at www.terranorbital.com.

Forward-Looking Statements

This press release contains, and the Company’s officers and representatives may from time to time make other public written and verbal announcements that contain, “forward-looking statements” for purposes of the federal securities laws. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. All statements, other than statements of present or historical facts, contained in this press release, regarding our business strategy, future operations, prospects, expectations and the expectations of our customers, estimates, plans and objectives of management are forward-looking statements. Forward-looking statements are typically identified by such words as “plan,” “believe,” “expect,” “anticipate,” “intend,” “could,” “may,” “might,” “will,” “should,” “would” and “could” and other similar words and expressions. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by the forward-looking statements contained in this press release, including, but not limited to: Rivada’s ability to obtain additional funding to continue to finance its operations and fund future installments of our manufacturing contract; the status of Rivada’s regulatory approvals for its constellation and business operations and continuing ability to receive and maintain required regulatory approvals to conduct its business; Rivada’s right to terminate our contract for convenience or default; our ability to scale-up our manufacturing processes and facilities in order to meet the demands of this program; design and engineering flaws that may exist in our products and the failure of our components and satellites to operate as intended; our ability to finance our operations, research and development activities and capital expenditures; expectations regarding our strategies and future financial performance, including our future business plans or objectives, anticipated cost, timing and level of deployment of satellites, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, retention and expansion of our customer base, product and service offerings, pricing, marketing plans, operating expenses; our ability to manufacture a large number of satellites in the anticipated timeframe; our anticipated costs associated with such manufacturing; market trends, revenues, margins, liquidity, cash flows and uses of cash, capital expenditures, and our ability to invest in growth initiatives; the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional opportunities; anticipated timing, cost, financing and development of our satellite manufacturing capabilities; our ability to finance our operations, research and development activities and capital expenditures; our expansion plans and opportunities; our ability to comply with domestic and foreign regulatory regimes and the timing of obtaining regulatory approvals; our ability to finance and invest in growth initiatives; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; the possibility that the COVID-19 pandemic, or another major disease, natural disaster, or threat to the physical security of our facilities or employees disrupts our business; supply chain disruptions, including delays, increased costs and supplier quality control challenges; the ability to attract and retain qualified labor and professionals and our reliance on a highly skilled workforce, including technicians, engineers and other professionals; our ability to achieve profitability and meet expectations regarding cash flow from operations and investments; our leverage and our ability to service cash debt payments and comply with debt maintenance covenants, including meeting minimum liquidity and operating profit covenants; our ability to access invested cash or cash equivalents upon failure of any financial institutions we bank with; limited access, or access on unfavorable terms, to equity and debt capital markets and other funding sources that will be needed to fund operations and make investments; litigation and regulatory enforcement, including the diversion of management time and attention and the additional costs and demands on our resources; and the other risks disclosed in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including under the heading “Risk Factors” in the prospectus dated June 16, 2022 related to our Registration Statement on Form S-1, as amended (File No. 333-264447), which was declared effective by the SEC on June 23, 2022, and our Form 10-K for the year ended December 31, 2022.

These forward-looking statements are based on management’s current expectations, plans, forecasts, assumptions, and beliefs concerning future developments and their potential effects. There can be no assurance that the future developments affecting us will be those that we have anticipated, and we may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. New risk factors and uncertainties may emerge from time to time, and it is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. You should read this press release with the understanding that our actual future results may be materially different from the expectations disclosed in the forward-looking statements we make. All forward-looking statements we make are qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and we do not assume any obligation to, and we do not intend to, update any forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as required by law.

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