York fuels up for NYSE IPO with private CB
York Space Systems provided early lift-off to its NYSE IPO by raising US$241m from the sale of a pre-IPO convertible bond, raising some much-needed cash ahead of the deal launch but also increasing the cost of the late-stage funding round.
Goldman Sachs, Jefferies and Wells Fargo are joint bookrunners on the all-primary offering publicly filed on Monday, which IFR estimates is likely to be sized at roughly US$250m.
A key contractor with the US Department of Defense space-based communications network, York currently has 33 satellites in orbit under six different contracts with the US government.
Ahead of the IPO filing, York raised US$241m from the recent sale of a CB that is convertible at a 20% discount to the IPO price. That discount grows by 2.5% every six months up to a maximum of 30%.
Principal York backer AE Industrial Partners was among several investors who purchased the pre-IPO CB.
The CB holders would be able to sell up to half of the shares converted after 90 days if the share price trades 15% above the IPO price over a five-day testing period.
The CB proceeds provide much needed cash, adding to just US$22.5m held as of September 30. York has also lined up a new US$150m credit facility set to mature three years from the IPO closing date.
York is going public as revenue in the first nine months of 2025 grew by nearly 60% to US$280.9m.
Adjusted Ebitda losses narrowed to US$6.9m, from US$38.9m, and the company finished the third quarter with a backlog of US$642m down from US$861.7m at the end of 2024.