Endurance Acquisition Corp. (EDNC) Lowers Satixfy Valuation in Re-Strike

Endurance Acquisition Corp. (NASDAQ:EDNC) announced in an 8-K filing this morning that it has made a pair of amendments to its combination with satellite hardware-maker Satixfy, lowering its valuation and introducing sponsor concessions.

The changes reduce Satixfy’s equity value by -55% to $365 million, down from $813 million at announcement and also waives the deal’s minimum cash condition. The agreement’s September 8 termination date will now be November 7th, with the language adjusted accordingly.

Endurance’s sponsor has also agreed to forfeit 800,000 promote shares (16%) as a part of the recent changes. Depending on the final proceeds of the deal, between 10% and 30% of the sponsor’s promote was already subject to additional conditions, vesting according to the same targets as the price adjustment shares.

The transaction still includes a $29 million PIPE and $55 million term loan from Francisco Partners, which has already been paid. It is further supported by a $75 million committed equity facility, through which Satixfy may direct a Cantor Fitzgerald affiliate to make post-close share purchases.

The parties initially announced the deal on March 8 and have not yet set a date for the completion vote. The Rehovot, Israel-based company designs satellite communication systems based on chipsets developed in-house.

Last month, it announced it had successfully created an Earth-bound 5G connection via low-Earth-orbit satellites fitted with Satixfy hardware as a part of its collaboration with the UK Space Agency and the European Space Agency’s Sunrise Partnership Project.