BlackSky prices $160 million convertible notes offering

BlackSky Technology Inc. (NYSE: BKSY) announced the pricing of $160 million in convertible senior notes due 2033 in a private offering to qualified institutional buyers. The satellite intelligence company increased the offering size from the previously announced $125 million.

The notes carry an 8.25% interest rate and mature on August 1, 2033. Initial purchasers received an option to purchase up to an additional $25 million in notes during a 13-day period. The sale is expected to close on July 22, 2025, subject to customary closing conditions.

The conversion rate is set at 27.1909 shares of BlackSky's Class A common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $36.78 per share. This represents a 30% premium over the last reported sale price on the New York Stock Exchange on July 17, 2025.

BlackSky estimates net proceeds of approximately $153.7 million after deducting fees and expenses, or $177.9 million if the additional notes option is exercised in full. The company plans to use approximately $103.1 million to repay outstanding borrowings under its secured term loan facility and $10.2 million to repay borrowings under its secured revolving credit facility.

The remaining proceeds will be used for general corporate purposes, including working capital, operating expenses, capital expenditures, and strategic investments.

BlackSky may not redeem the notes prior to August 4, 2028. Holders may require the company to repurchase notes on August 6, 2030, at 100% of principal amount plus accrued interest.

The notes and underlying shares have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption.

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