BlackSky plans $125 million convertible notes offering

BlackSky Technology Inc. (NYSE: BKSY) announced plans to offer $125 million in convertible senior notes due 2033 through a private placement to qualified institutional buyers. The satellite intelligence company also intends to grant initial purchasers an option to buy up to an additional $18.75 million in notes within 13 days of issuance.

The notes will be unsecured obligations that accrue interest payable semiannually. Upon conversion, BlackSky may pay cash, shares of Class A common stock, or a combination of both. The interest rate and conversion terms will be determined at pricing.

BlackSky plans to use approximately $103.1 million of net proceeds to repay outstanding borrowings and prepayment premiums under its secured term loan facility and terminate the arrangement. Another $10.2 million will repay borrowings under its secured revolving credit facility, which will also be terminated. The company intends to use remaining proceeds for general corporate purposes, including working capital, operating expenses, capital expenditures, and strategic investments.

The notes and any shares issuable upon conversion have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

BlackSky operates a satellite constellation and analytics platform that provides real-time imagery and monitoring services to government agencies and commercial customers. The company is headquartered in Herndon, Virginia.

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