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Richard Branson’s Virgin Orbit to Go Public Through $3.2-B SPAC Deal

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Sir RIchard Branson at the Power Up Gala

 

Richard Branson’s Virgin Orbit has unveiled plans to go public through a $3.2-billion merger with special purpose acquisition company NextGen Acquisition Corp. II.

Source: Virgin Orbit

NGCA is up 1.70%

The combined company is expected to generate $483 million in cash, including up to $383 million in NextGen’s trust account, and $100 million fully committed by private investment in public equity investors at $10.00 per share.

Proceeds will be used to finance growth capital for the company’s rocker manufacturing to meet customer demand. It will also finance the expansion of the space solutions business and ongoing development initiatives.

Under the agreement, existing shareholders of Virgin Orbit will roll all of their equity into the combined company, of which they will own approximately 85%. NextGen shareholders will own approximately 10%, PIPE investors with 3%, and the SPAC sponsor 2%.

Virgin Orbit tapped Credit Suisse Securities (USA) LLC. as its lead financial advisor and lead capital markets advisor and co-lead placement agent for PIPE transactions. NextGen designed Goldman Sachs & Co. LLC as its exclusive financial advisor and co-lead placement agent.

The transaction is expected to close in the fourth quarter, subject to shareholder approval. It will trade on the Nasdaq under the ticker symbol “VORB.”

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