Virgin Orbit to Become Publicly Traded Company in Deal With NextGen Acquisition II
August 23 2021 - 7:45AM
Dow Jones News
By Chris Wack
Virgin Orbit confirmed it will be taken public in a deal with
NextGen Acquisition Corp. II, a special purpose acquisition
company.
Earlier, the Wall Street Journal reported that Boeing Co. has
committed to investing in Richard Branson's Virgin Orbit as part of
the satellite-launching startup's planned $3.2 billion listing
later this year.
Upon closing, the transaction is expected to provide the
combined company up to $483 million in cash proceeds, including up
to $383 million of cash held in the trust account of NextGen and a
$100 million fully committed private investment in public
equity.
The combined company will retain the Virgin Orbit name and is
expected to be listed on Nasdaq under the ticker symbol VORB.
The transaction values Virgin Orbit at an implied pro forma
enterprise value of $3.2 billion and is expected to close around
the end of the year.
Virgin Orbit's existing shareholder base is comprised of Virgin
Group, Mubadala Investment Co., and management and employees.
Existing Virgin Orbit shareholders will roll 100% of their equity
into the combined company. Existing Virgin Orbit shareholders are
expected to retain ownership of 85% of the combined company,
NextGen's public shareholders are expected to own 10% of the
combined company, with PIPE investors and the SPAC sponsor expected
to own 3% and 2%, respectively, immediately following closing.
Boeing's planned investment is intended to be made through the
PIPE.
Shares of NextGen Acquisition were halted at $9.86 a share in
premarket trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
August 23, 2021 07:39 ET (11:39 GMT)
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