BlackSky Technology Inc. (NYSE:BKSY), currently trading near its 52-week high of $28.85 with a market capitalization of $887 million, announced Thursday it has priced a $160 million offering of 8.25% Convertible Senior Notes due 2033, an increase from the previously announced $125 million. The company also granted initial purchasers an option to purchase up to an additional $25 million in notes.

The offering is expected to close on Monday, subject to customary closing conditions. The notes will be sold to qualified institutional buyers under Rule 144A of the Securities Act.

The notes will be unsecured obligations with interest payable semiannually beginning February 1, 2026. They will mature on August 1, 2033, unless converted, redeemed, or repurchased earlier.

Holders may convert their notes at any time before maturity. Upon conversion, BlackSky will deliver cash, shares of its Class A common stock, or a combination of both, at the company’s discretion.

The initial conversion rate is 27.1909 shares per $1,000 principal amount, equivalent to approximately $36.78 per share, representing a 30% premium over BlackSky’s closing stock price on July 17. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with impressive gross profit margins of 69.27% and strong recent performance, showing a 218% return over the past year.

BlackSky expects to receive approximately $153.7 million in net proceeds, or $177.9 million if the additional purchase option is fully exercised. The company plans to use about $103.1 million to repay its secured term loan facility and approximately $10.2 million to repay its secured revolving credit facility. The remainder will fund general corporate purposes. InvestingPro data shows the company maintains a healthy current ratio of 3.79, with liquid assets exceeding short-term obligations. Get access to 18 additional ProTips and comprehensive analysis with an InvestingPro subscription.

The notes and any shares issuable upon conversion have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.

BlackSky provides real-time, space-based intelligence through high-frequency imagery and analytics from its proprietary low earth orbit satellite constellation. The company generated revenue of $107.4 million in the last twelve months, with analysts anticipating continued sales growth. Dive deeper into BlackSky’s financial health and growth prospects with a detailed Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a company press release statement.

In other recent news, BlackSky Technology Inc. released preliminary financial results for the second quarter of 2025, reporting estimated revenue of $22.2 million, a decline from $24.9 million in the same period in 2024. For the first half of 2025, the company saw total revenue rise to $51.7 million, up from $49.2 million in the first half of 2024. BlackSky also revised its full-year 2025 guidance, expecting revenue between $105 million and $130 million, citing U.S. Government budget uncertainties as a factor. Additionally, BlackSky announced plans to offer $125 million in convertible senior notes due 2033, intending to use the proceeds for debt repayment and general corporate purposes. The company has also secured a multimillion-dollar contract with a new international client for satellite imagery services and ground segment modernization. Furthermore, BlackSky renewed a contract with an existing international customer, enhancing capabilities with Gen-3 satellite imagery. These developments highlight BlackSky’s ongoing efforts to expand its services and manage financial resources effectively.