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In a significant move, Redwire Corp (NYSE:RDW), currently trading at $19.43 and showing remarkable momentum with a 194% return over the past year, has entered into a credit agreement for a $90 million term loan and has completed the strategic acquisition of Edge Autonomy. According to InvestingPro analysis, the company’s stock has demonstrated strong performance with a 61% gain in the last six months, though investors should note its characteristic high volatility. On Friday, the aerospace manufacturer announced that the credit agreement with JPMorgan Chase (NYSE:JPM) Bank, N.A., alongside other lenders, will support the acquisition and general corporate purposes.
The term loan, maturing on April 28, 2027, is part of the financing strategy for the purchase of Edge Autonomy, a transaction initially agreed upon on January 20, 2025, and subsequently amended on February 3, 2025, and June 8, 2025. The acquisition deal, valued at $925 million, was completed on Friday, with Redwire paying a mix of cash and stock to Edge Autonomy’s seller. With a current market capitalization of $1.49 billion and operating with moderate debt levels, Redwire appears positioned to manage this significant acquisition effectively.
Redwire also issued a Seller Note worth $100 million to Edge Autonomy’s seller as partial consideration for the merger. This unsecured note bears interest that can be paid in cash or in-kind, with rates varying based on the period, reaching up to 18% annually after January 1, 2026.
Additionally, Redwire entered into an Amended and Restated Investor Rights Agreement with AE Industrial Stockholders and Genesis Park Holdings, among others. This agreement outlines director nomination rights, registration rights for the resale of Redwire Common Stock, and a 180-day lock-up period following the closing of the transaction.
The acquisition was approved by Redwire’s stockholders at a special meeting held on Friday, with the majority and minority votes both in favor. The transaction was exempt from registration under the Securities Act of 1933, pursuant to Section 4(a)(2).
The financial implications of the merger and acquisition have been detailed in the unaudited pro forma financial information filed with the SEC, providing insight into the combined entity’s balance sheet and income statement as of March 31, 2025.
This strategic move positions Redwire as a more significant player in the aerospace sector, expanding its capabilities and market reach through the integration of Edge Autonomy’s technologies and services. The information reported is based on a press release statement.
In other recent news, Redwire Corporation has completed its acquisition of Edge Autonomy Intermediate Holdings, LLC, expanding its presence in the defense technology sector. This acquisition, valued at $925 million, includes $160 million in cash and $765 million in Redwire common stock, with the expectation of being immediately beneficial to Redwire’s revenue and financial metrics. Redwire forecasts that the combined company could achieve revenues between $535 million and $605 million by 2025. Additionally, Redwire has been selected by NASA to manage a space microalgae biotechnology experiment on the International Space Station, in collaboration with international partners. This project aims to explore the potential of microalgae as a sustainable food source for astronauts on long-duration missions. Furthermore, Redwire’s Mason technology, designed for lunar and Martian infrastructure, has successfully passed NASA’s Critical Design Review, moving it closer to deployment. The Mason suite, part of a $12.9 million project, aims to construct features like landing pads and roads on extraterrestrial surfaces. These developments position Redwire as a significant player in both aerospace and defense sectors, enhancing its capabilities and market reach.
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