HERNDON, Virginia: BlackSky Technology Inc., a leader in real-time satellite intelligence, has announced plans to raise $125 million through a private placement of convertible senior notes due 2033, marking a significant move to overhaul its capital structure and ignite long-term strategic initiatives.
Key Terms of the Convertible Notes
- Offering Size: $125 million principal amount, with an additional purchaser option of up to $18.75 million, available for settlement within 13 days of the issue date.
- Notes Structure: The instruments will be general unsecured obligations, accruing interest semiannually. On conversion, holders may receive cash, shares of BlackSky’s Class A stock, or a combination thereof, at BlackSky’s discretion.
- Pricing Mechanics: Interest rate, conversion rate, and further details to be determined at pricing. The notes are unregistered, offered under Rule 144A aimed at qualified institutional buyers in compliance with the Securities Act of 1933.
BlackSky’s offering arrives amid a period of robust financial momentum. The company intends to allocate approximately $103.1 million of the net proceeds to retire its outstanding secured term loan facility, and $10.2 million to close out its secured revolving credit facility. Both loans, terminated upon repayment, carried higher interest rates and short maturities, weighing heavily on near-term cash flows. By replacing this short-term, costly debt with long-term, fixed-income convertible notes, BlackSky is expected to reduce refinancing risk and provide stability as the company scales.
Any remaining proceeds will fund a mix of general corporate purposes—ranging from working capital and operating expenses to capital expenditures and targeted investments in adjacent capabilities, extending BlackSky’s technological and commercial edge.
BlackSky’s realignment follows a string of positive financial results and strong contract wins in 2025. In the first quarter, the company reported a 22% jump in total revenue to $29.5 million and secured over $130 million in new bookings. Its backlog surged 40% to $366 million, reflecting increasing demand for next-generation, high-frequency satellite imagery and real-time analytics across government and commercial sectors.
Operational highlights in 2025 include:
- The commissioning and performance overachievement of BlackSky’s first Gen-3 satellite.
- Preparation for a sequence of additional Gen-3 launches, with the next vehicle on schedule for Q2 deployment.
- Persistent sales pipeline growth, powered by a marriage of high-resolution imagery, rapid revisit rates, and AI-enhanced intelligence solutions.
- As of March 31, 2025, BlackSky maintained cash, equivalents, and short-term investments totaling $77 million—with $32 million allocated upfront for new contract work, further underpinning its liquidity.
The transaction is widely seen by analysts and industry observers as both a pragmatic and transformative measure. By using more than $113 million of offering proceeds to eliminate secured loans and revolving credit, BlackSky is not only slashing its interest burden—trading double-digit secured loan rates for a fixed coupon (noted in the final pricing at 8.25%)—but also unlocking capital for strategic reinvestment. This enhanced flexibility is expected to fund next-generation satellite deployments and proprietary analytics advancements, keeping BlackSky at the vanguard of commercial space-based intelligence.
Moreover, the flexibility on conversion (cash, stock, or both) helps BlackSky manage dilution risk and capital market dynamics over the life of the notes.
The notes—and any shares issued upon conversion—are not registered under the Securities Act or state securities laws and cannot be offered or sold in the United States absent registration or a qualifying exemption. The company underscored that the release does not constitute an offer or solicitation in any jurisdiction where such actions would be unlawful.
Market watchers have described the move as timely, as BlackSky’s sector faces heavy investment demand amid geopolitical tensions and increased commercial adoption, but also persistent funding and credit risks typical of space infrastructure ventures.
Headquartered in Herndon, Virginia, BlackSky operates one of the world’s most advanced commercial real-time intelligence systems, seamlessly integrating its proprietary low Earth orbit satellite constellation with the BlackSky Spectra® analytics platform. Its services enable customers—ranging from U.S. and international government agencies to global businesses—to monitor critical locations, assets, and unfolding events as they happen, delivering intelligence that empowers rapid, decisive action.
BlackSky projects full-year 2025 revenues between $125 million and $142 million, alongside robust adjusted EBITDA guidance. With the proposed debt restructuring and accelerated investment in advanced imaging and analytics, BlackSky aims to secure its position as a linchpin in the new era of commercial geospatial intelligence
