Insider filing report for Changes in Beneficial Ownership
- Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
- Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
Terran Orbital Corporation
(Name of Issuer)
Common Stock, par value $0.0001 per share
(Title of Class of Securities)
88105P103
(CUSIP NUMBER)
(CUSIP NUMBER)
Daniel C. Staton
9501 Jagged Creek Ct.
Delray Beach, FL 33446
(561) 988-1704
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
March 25, 2022
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g) check
the following box ◻.
The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Act”), or otherwise subject to the
liabilities of that section of the Act but shall be subject to all other provisions of the Act.
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CUSIP No. 88105P103
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13D
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1
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NAME OF REPORTING PERSONS
Daniel C. Staton
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2
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) ◻ (b) ◻
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||||||||||
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3
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SEC USE ONLY
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||||||||||
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4
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SOURCE OF FUNDS*
OO
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||||||||||
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5
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
◻
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||||||||||
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6
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CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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||||||||||
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NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
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7
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SOLE VOTING POWER
12,719,268(1)
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|||||||||
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8
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SHARED VOTING POWER
53,243 (2)
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||||||||||
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9
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SOLE DISPOSITIVE POWER
12,719,268 (1)
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||||||||||
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10
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SHARED DISPOSITIVE POWER
53,243 (2)
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||||||||||
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11
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
12,772,511 (1)
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12
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
◻
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||||||||||
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13
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5(a))
9.3%
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||||||||||
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14
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TYPE OF REPORTING PERSON*
IN
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||||||||||
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(1)
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Includes 12,719,268 shares of common stock, par value $0.0001 per share (the “Common Stock”), of Terran Orbital Corporation (formerly known as Tailwind Two Acquisition
Corp., the “Issuer”) held directly and those underlying exercisable RSUs; 8,133,126 shares of Common Stock of the Issuer held by Staton Tyvak Family Limited Partnership, of which Mr. Staton has sole voting and dispositive power; and
3,000,000 shares of Common Stock held by Staton Orbital Family Limited Partnership, of which Mr. Staton has sole voting and dispositive power.
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||||||||||
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(2)
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Includes 53,243 shares of Common Stock of the Issuer held directly by Terran Orbital Management Investors LLC, an investment vehicle, of which Mr. Staton shares voting and dispositive power.
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CUSIP No. 88105P103
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13D
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|||||||||||
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1
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NAME OF REPORTING PERSONS
Staton Tyvak Family Limited Partnership
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|||||||||||
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2
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CHECK THE APPROPRIAT
E BOX IF A MEMBER OF A GROUP*
(a) ◻ (b) ◻
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|||||||||||
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3
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SEC USE ONLY
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|||||||||||
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4
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SOURCE OF FUNDS*
OO
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|||||||||||
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5
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
◻
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|||||||||||
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6
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CITIZENSHIP OR PLACE OF ORGANIZATION
Wyoming
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|||||||||||
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NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
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7
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SOLE VOTING POWER
8,133,126 (1)
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||||||||||
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8
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SHARED VOTING POWER
0
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|||||||||||
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9
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SOLE DISPOSITIVE POWER
8,133,126 (1)
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|||||||||||
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10
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SHARED DISPOSITIVE POWER
0
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|||||||||||
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11
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,133,126 (1)
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|||||||||||
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12
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
◻
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|||||||||||
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13
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5(a))
5.9%
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|||||||||||
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14
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TYPE OF REPORTING PERSON*
PN
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|||||||||||
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(1)
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Includes 8,133,126 shares of Common Stock of the Issuer held directly by the reporting person, of which Mr. Staton holds sole
voting and dispositive power.
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CUSIP No. 88105P103
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13D
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||||||||||||
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1
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NAME OF REPORTING PERSONS
Staton Orbital Family Limited Partnership
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||||||||||||
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2
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) ◻ (b) ◻
|
||||||||||||
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3
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SEC USE ONLY
|
||||||||||||
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4
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SOURCE OF FUNDS*
OO
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||||||||||||
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5
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
◻
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||||||||||||
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6
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CITIZENSHIP OR PLACE OF ORGANIZATION
Wyoming
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||||||||||||
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NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
|
7
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SOLE VOTING POWER
3,000,000
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|||||||||||
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8
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SHARED VOTING POWER
0
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||||||||||||
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9
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SOLE DISPOSITIVE POWER
3,000,000
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||||||||||||
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10
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SHARED DISPOSITIVE POWER
0
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||||||||||||
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11
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,000,000
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12
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
◻
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||||||||||||
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13
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5(a))
2.2%
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14
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TYPE OF REPORTING PERSON*
PN
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||||||||||||
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(1)
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Includes 3,000,000 shares of Common Stock of the Issuer held directly by the reporting person, of which Mr. Staton holds sole voting and dispositive
power.
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Schedule 13D
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Item 1.
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Security and Issuer
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The class of equity security to which this statement on Schedule 13D relates is the common stock, par value $0.0001 per share
(the “Common Stock”), of Terran Orbital Corporation, a Delaware corporation (formerly known as Tailwind Two Acquisition Corp., the “Issuer”). The address of the principal executive offices of the Issuer is 6800 Broken Sound Parkway, Suite 200,
Boca Raton, Florida 33487.
Information given in response to each item shall be deemed incorporated by reference in all other items, as applicable.
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Item 2.
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Identity and Background
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(a) This statement is filed by:
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(i)
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Daniel C. Staton;
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(ii)
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Staton Tyvak Family Limited Partnership (the “ST Family LP”); and
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(iii)
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Staton Orbital Family Limited Partnership (the “SO Family LP”).
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Each of the above is referred to as a “Reporting Person” and collectively as the “Reporting Persons”.
(b) The business address or address of the principal office of the Reporting Persons is 9501 Jagged Creek Ct. Delray Beach,
FL 33446.
(c) Daniel C. Staton is the Vice Chairman of the Issuer, is the managing member of ST Family GP and is the general partner of
ST Family LP and SO Family LP. The primary business of ST Family LP and SO Family LP is to invest in securities of the Issuer.
(d) and (e) During the past five years, none of the Reporting Persons has been (i) convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
(f) The citizenship with respect to a natural person or state of organization with respect to an entity, as applicable, of the Reporting Persons is as follows:
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(i)
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Daniel C. Staton – United States
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(ii)
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ST Family LP – Wyoming
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(iii)
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SO Family LP – Wyoming
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Item 3.
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Source and Amount of Funds or Other Consideration
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The information in Item 4 is incorporated herein by reference.
Funds for the purchase of securities reported herein were derived from cash on hand and by selling other investments. The Reporting Persons paid to the
Issuer $30,502,000 for the shares of Common Stock.
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Item 4.
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Purpose of Transaction
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On March 25, 2022, the Issuer consummated the business combination contemplated
in the Agreement and Plan of Merger, dated as of October 28, 2021, as amended by Amendment No. 1 thereto dated February 8, 2022 and Amendment No. 2 thereto dated
March 9, 2022 (the “Merger Agreement”), by and among the Issuer, Terran Orbital Operating Corporation (formerly known as Terran Orbital Corporation (“Old Terran Orbital”) and Titan Merger Sub, Inc. (the “Business Combination”). As a result of the
Business Combination, among other things, all of the outstanding shares of Old Terran Orbital were converted into the Issuer’s common stock, par value $0.0001 per share. In connection with the closing of the Business Combination, Mr. Staton
became Vice Chairman of the Board of Directors of the Issuer (the “Board”).
Subscription Agreement
On October 28, 2021, concurrently with the execution of the Merger Agreement, the Issuer entered
into a subscription agreement (the “Subscription Agreement”) with investors, including SO Family LP. Pursuant to the Subscription Agreement, SO Family LP agreed to subscribe for and purchase, and the Issuer agreed to issue and sell to SO Family
LP,
immediately following the Domestication (as defined in the Subscription Agreement) and prior to the closing of the Business Combination, 3,000,000 shares of Common Stock of the Issuer for a purchase price of $10.00 per share, for aggregate
gross proceeds of approximately $30.0 million (the “PIPE Financing”). The PIPE Financing was consummated substantially concurrently with the closing of the Business Combination. The Issuer also agreed to pay SO Family LP (i) four quarterly installments of $1,875,000 to be paid on the last day of each quarter of 2022 and (ii) 12 quarterly payments of $1,875,000 per quarter either in
shares of Common Stock (determined by reference to the 15-day VWAP) or in cash in the Issuer’s determination.
The foregoing description of the Subscription Agreement does not purport to be complete and is
qualified in its entirety by the full text of the Subscription Agreement, which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
Investor Rights Agreement
Concurrently with the execution of the Merger Agreement, the Issuer, Old Terran Orbital and
other parties thereto, including Mr. Daniel Staton, entered into an investor rights agreement (the “Investor Rights Agreement”), pursuant to which, such parties were granted certain customary registration rights with respect to their respective
Registrable Securities (as defined in the Investor Rights Agreement), in each case, on the terms and subject to the conditions set forth therein. The Investor Rights Agreement provides that the Issuer will grant the investors party thereto
certain customary registration rights. The Issuer will, within 45 days after the consummation of the Business Combination on March 25, 2022, file with the Securities and Exchange Commission (the “SEC”) a registration statement registering the
resale of such shares of the Issuer and will use its commercially reasonable efforts to have such registration statement declared effective as soon as practicable after the filing thereof and will not be subject to any form of monetary penalty
for its failure to do so; provided however that other than certain investors, and subject to certain exceptions (including as discussed below), the investors shall be subject to a six month lock-up after the consummation of the Business
Combination.
The foregoing description of the Investor Rights Agreement does not purport to be complete and
is qualified in its entirety by the full text of the Investor Rights Agreement, which is attached hereto as Exhibit 99.3 and is incorporated herein by reference.
Indemnification Agreements
In connection with the Merger Agreement, on or around March 25, 2022, the Issuer entered into indemnification
agreements with each of its directors and executive officers, including Mr. Staton. These indemnification agreements provide that the Issuer will indemnify each of its directors and executive officers against any and all expenses incurred by such
director or executive officer because of his or her status as one of the Issuer’s directors or executive officers, to the fullest extent permitted by Delaware law and the Issuer’s charter and bylaws. In addition, the indemnification agreements
provide that, to the fullest extent permitted by Delaware law, the Issuer will advance all expenses incurred by its directors or executive officers in connection with a legal proceeding involving his or her status as a director or executive
officer.
The foregoing description of the indemnification agreements does not purport to be complete and is qualified in
its entirety by the full text of the Form of Indemnification Agreement, which are attached hereto as Exhibit 99.3 and is incorporated herein by reference.
The Reporting Persons acquired the Common Stock and other securities of the Issuer for investment purposes. Due to
Mr. Staton’s membership on the Board, he may from time to time have further discussions with directors and officers of the Issuer, or discussions with other shareholders or third parties regarding the Issuer’s business operations, strategies,
capital structure, assets, liabilities and other matters related to the Issuer. The Reporting Persons, including as a member of the Board, may engage in a number of conversations that may relate to one or more of the items in subsections (a) through (j). The Reporting Persons may, at
any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.
The Reporting Persons intend to review their investment in the Issuer on a continuing basis and may from time to
time and at any time in the future depending on various factors, including, price levels of the Issuer’s securities, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and
industry conditions, take such actions with respect to the investment in the Issuer as they deem appropriate. These actions may include: (i) acquiring additional shares of Common Stock and/or other securities, derivatives or other instruments
that are based upon or relate to the value of securities of the Issuer (collectively, “Securities”) in the open market or otherwise; (ii) disposing of any or all of their Securities in the open market or otherwise; (iii), to the extent permitted
under the policies of the Issuer, engaging in any hedging or similar transactions with respect to the Securities; or (iv) proposing or considering one or more of the actions described in subsections (a) through (j) of Item 4 of Schedule 13D.
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Item 5.
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Interest in Securities of the Issuer
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The information in Item 4 is incorporated herein by reference.
(a) and (b) Items 7 through 11 and 13 of each of the cover pages of this Schedule 13D are incorporated herein by reference. The below information is
based on the number of shares of Common Stock reported as issued and outstanding in the Issuer’s Amended Current Report on Form 8-K filed with the SEC on March 31, 2022.
As described in Item 4, the Reporting Persons may be deemed the beneficial owner of the following:
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A.
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Daniel C. Staton
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||
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(a)
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As of the close of business on April 4, 2022, Daniel C. Staton beneficially owned 12,772,511 shares of Common Stock.
|
||
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Percentage: 9.3%
|
|||
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(b)
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1. Sole power to vote or direct vote: 12,719,268
2. Shared power to vote or direct vote: 53,243 3. Sole power to dispose or direct the disposition: 12,719,268 4. Shared power to dispose or direct the disposition: 53,243 |
||
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B.
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Staton Tyvak Family Limited Partnership
|
|
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(a)
|
As of the close of business on April 4, 2022, Staton Tyvak Family Limited Partnership beneficially owned 8,133,126 shares of Common Stock.
|
|
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Percentage: 5.9%
|
||
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(b)
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1. Sole power to vote or direct vote: 8,133,126
2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 8,133,126 4. Shared power to dispose or direct the disposition: 0 |
|
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C.
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Staton Orbital Family Limited Partnership
|
||
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(a)
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As of the close of business on April 4, 2022, Staton Orbital Family Limited Partnership beneficially owned 3,000,000 shares of Common Stock.
|
||
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Percentage: 2.2%
|
|||
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(b)
|
1. Sole power to vote or direct vote: 3,000,000
2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 3,000,000 4. Shared power to dispose or direct the disposition: 0 |
||
(c) The disclosure in Item 4 is incorporated herein by reference. Except as disclosed in this Schedule 13D, there have
been no transactions in the Common Stock by the Reporting Persons within the past 60 days.
(d) Not applicable.
(e) Not applicable.
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Item 6.
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Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
|
The information in Item 4 is incorporated herein by reference. Other than the agreements described in Item 4, as of the date hereof, there are no contracts,
arrangements, understandings or relationships (legal or otherwise) among the persons named in Item 2 hereof and between such persons and any person with respect to any securities of the Issuer.
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Item 7.
|
Material To Be Filed as Exhibit
|
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99.1
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Joint Filing Agreement.
|
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99.2
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Subscription Agreement (incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed on October 28, 2021).
|
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99.3
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Investor Rights Agreement, dated October 28, 2021, by and among Terran Orbital Corporation, Tailwind Two Acquisition Corp. and the other parties
thereto (incorporated by reference to Exhibit 10.5 to Current Report on Form 8-K filed on October 28, 2021).
|
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99.4
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Form of Indemnification Agreement (incorporated by reference to Exhibit 10.10 to the Amended Current Report on Form 8-K filed on March 28, 2022).
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Signatures
After reasonable inquiry and to the best of their knowledge and belief, each of the undersigned certifies that the information set forth in this statement
is true, complete and correct.
Dated: April 4, 2022
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STATON TYVAK FAMILY LIMITED PARTNERSHIP
STATON ORBITAL FAMILY LIMITED PARTNERSHIP
|
By: /s/ Daniel C. Staton
Name: Daniel C. Staton
Title: Authorized Signatory
/s/ Daniel C. Staton
DANIEL C. STATON
Exhibit 99.1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of
each of them of a Statement on Schedule 13D (including additional amendments thereto) with respect to the common stock, par value $0.0001 per share, of Terran Orbital Corporation, a Delaware corporation. This Joint Filing Agreement shall be filed
as an Exhibit to such Statement. The undersigned acknowledge that each shall be responsible for the timely filing of any amendments to such joint filing and for the completeness and accuracy of the information concerning him or it contained herein
and therein, but shall not be responsible for the completeness and accuracy of the information concerning the others.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original.
EXECUTED as of this 4th day of April, 2022.
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STATON TYVAK FAMILY LIMITED PARTNERSHIP
STATON ORBITAL FAMILY LIMITED PARTNERSHIP
|
By: /s/ Daniel C. Staton
Name: Daniel C. Staton
Title: Authorized Signatory
/s/ Daniel C. Staton
DANIEL C. STATON