Space Structured Finance Solutions

With Pre-Delivery Payment (PDP) Finance, SFC provides scheduled contract payments to space-asset manufacturers and space service providers, including launch service providers.
Typically, the SFC client makes interest-only payments until the asset/service is delivered by the manufacturer/service provider.
At the time of delivery of a space asset, a PDP Finance program can be converted into a Space Finance Lease or a Space Operating Lease.

Similar to historical aviation, vessel and railcar financing structures, a Space Finance Lease provides debt capital for space assets with a repayment schedule (Space Debt).
The repayment of the Space Debt is secured by various protections cumulatively called a “security package”.
A Space Finance Lease does not transfer title or remove the space assets from the client’s balance sheet.

SFC provides a range of Space Credit Facilities to space companies, including:
Purchase Order/Receivables Financing/Factoring;
Launch Slot Financing.

A DIPP solution results in an SFC SPV purchasing finished or nearly finished (kits) manufactured and assembled components for spacecraft at a discounted price.
The degree of completion of the inventory depends on the whether the inventory can be sold in an “as is” completed form or whether final design and assembly is required to meet the needs of a particular customer.
The transaction provides sales and revenue to the client and removes asset inventory from its balance sheet.
The client agrees not to sell its own similar assets to its customers before all the DIPP assets are sold.
The DIPP purchase price assures that the inventory has a viable final market.
The DIPP revenue sharing of the final sales price to the end-user incentivizes the client to have the assets sell at the highest possible market price, providing profitable returns to SFC and the client.

An alternative to a Space Finance Lease is a Space Operating Lease.
Various types of Space Operating Leases are available depending on the asset, the market and the client’s needs, including:
A Space Operating Lease in which SFC owns the asset and retains ownership after the term of the lease.
A Space Operating Lease in which SFC owns the asset and sells it to the lessee after the completion of the lease term at a fair-market or a pre-negotiated residual value.
Space Sale & Leaseback in which SFC purchases an existing space asset from the client and leases the space asset back to the client (freeing up cash previously invested into the space asset)

SFC’s Space Asset OEM Partner Program is focused on supporting space asset original equipment manufacturers (Space OEMs) sales by financing their customers’ purchases.
SFC works with Space OEMs from the beginning of the sales process by offer the full range of SFC Space Structured Finance solutions to their customers.
Having non-dilutive financing solutions for customers enables Space OEMs to be more competitive and shorten sales cycles.
The Space Asset OEM Partner Program is a non-exclusive relationship and there is no cost to the Space OEM.
The SAC Partner Program can also be combined with the Discounted Inventory Purchase Program (DIPP) to have sellable inventory and avoid longer delivery periods.