Astra Space defaults on recently borrowed 9% private note due 2024

Chicago, Nov. 6 – Astra Space, Inc. defaulted twice on its $12.5 million of 9% senior secured notes due 2024 (with warrants) with an institutional investor, borrowed in August, according to an 8-K filing with the Securities and Exchange Commission.

The default pertains to the cash requirement clause on the indenture.

Initially, the company was required to maintain at least $15 million in cash, but negatively broached this barrier on Oct. 11.

The default was waived and the requirement was lowered to $10.5 million after the company reduced the outstanding principal amount with a $2 million payment against principal and an interest payment.

However, interest was still raised to 15%, the default interest rate.

The revised cash requirement of $10.5 million was not met again starting Oct. 30.

There was no waiver granted the second time, though.

On Nov. 1, the company paid a $2.5 million scheduled amortization payment at the 115% event of default rate with interest at the default rate for a total payment of $3.1 million.

The payment lowered the amount outstanding on the notes to $8 million.

The company is engaged with a number of other investors regarding potential additional debt and equity financings and other strategic transactions.

Astra offers dedicated orbital launch services, or commercial launches to low Earth orbit. The company is based in Alameda, Calif.

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