L.O.T.W. #156 - HawkEye 360: Closes Senior Growth Capital and Mezzanine Term Loan
Silicon Valley Bank doubles down on its HawkEye 360 relationship - anchoring a $48.6 million two-facility financing package, alongside Pinegrove and Hercules as mezzanine lenders
In December 2025, HawkEye 360, Inc., a commercial space-based signals intelligence (SIGINT) company, closed a coordinated $48.6 million debt package alongside the cash-and-stock acquisition of Innovative Signal Analysis, Inc. (ISA) and the initial close of an $80 million Series E preferred raise led by NightDragon. The debt package was bifurcated into a $14.6 million senior growth capital term loan from Silicon Valley Bank (First Citizens Bank) and a $34.0 million second-lien mezzanine term loan agented by SVB / First Citizens. This week’s L.O.T.W. is a two-parter; the senior facility and the mezzanine facility are reviewed in stacked sections below, followed by the shared covenant package.
👓At a Glance
Origination Date: December 18, 2025
Borrower: HawkEye 360, Inc.
Lenders:
Senior Growth Capital Term Loan - Silicon Valley Bank (First Citizens Bank)
Mezzanine Term Loan - First Citizens Bank (Agent)
Structure: $14.6 million senior secured growth capital loan + $34 million second-lien mezzanine term loan
Use of Proceeds: Fund cash portion of the $166.5 million ISA acquisition; transaction costs; general working capital
Source: SEC S-1
📷Borrower Snapshot
Sector: Information Technology
Subsector: Software
Commercial Stage: Revenue Generating; LTM EBITDA +
Business Overview: HawkEye 360 operates a commercial constellation of more than 30 satellites that collect radio frequency (RF) signal data and processes that data through proprietary AI/ML algorithms to deliver unclassified geospatial RF intelligence to defense, intelligence, and allied government customers. Founded in 2015 and headquartered in Herndon, Virginia, the company derives the majority of its revenue from U.S. Government and U.S. intelligence community contracts, with international customers contributing roughly 39% of revenue. Total revenue grew 74% in 2025 to $117.7 million (from $67.6 million in 2024), Adjusted EBITDA swung from negative $6.3 million to positive $24.8 million, and contracted backlog expanded nearly 7x to $302.7 million. The December 2025 acquisition of ISA, a Texas-based classified-cleared signal processing business, is intended to extend the company’s reach into the national security augmentation market by combining ISA’s classified architecture access and multi-domain detection capabilities with HawkEye’s commercial RF data stack.
⚙️Structure & Terms
Source: Growth Capital Term Loan Mezzanine Loan
Senior Term Loan
Lender: Silicon Valley Bank, a Division of First-Citizens Bank & Trust
Commitment: $14.6 million (single tranche, fully funded at close)
Maturity: September 1, 2028
Repayment: Interest only through December 2026 (~12 months I/O); 21 equal monthly installments of principal commencing January 1, 2027 through Maturity
Collateral: First priority lien on substantially all assets of Borrower and its subsidiaries; subject to Subordination Agreement with the mezzanine agent
Rate: Floating; Greater of WSJ Prime Rate and 6.75%
Equity Features - Senior: No new warrants issued at the senior level; the prior 2024 SVB warrant remains in place and was amended in connection with this restatement
Fees: None disclosed
Mezzanine Term Loan
Lenders: First-Citizens Bank & Trust (admin. agent and collateral agent) with participation from Silicon Valley Bank, and funds managed by Pinegrove and Hercules Capital
Commitment: $34.0 million (single tranche, fully funded at close)
Maturity: December 18, 2028
Repayment: 36 month I/O; Principal due at Maturity
Collateral: Second priority lien on substantially all assets of Borrower and its subsidiaries; subordinated under Subordination Agreement
Rate:
Floating, Greater of WSJ Prime + 2.10% and 9.35%
1.50% per annum, compounded monthly, accruing as PIK amount and added to principal
Equity Features - Mezzanine: 173,591 common share warrants at $4.65 strike
Fees:
Final Payment Fee - 1.95% of original aggregate principal amount of the Term Loan Advance, non-refundable and fully earned as of the Effective Date, payable to Agent for the ratable account of the Lenders upon repayment for any reason
Prepayment Fee - Up to 1.00% of the principal amount repaid prior to the second anniversary of closing; expressly waived if the loan is (a) prepaid within 60 days of the consummation of an IPO, or (b) prepaid pursuant to the mandatory revenue leverage prepayment provisions
Financial Covenants:
Minimum Liquidity: Borrower must maintain at all times unrestricted and unencumbered cash and Cash Equivalents subject to a Control Agreement in favor of the senior bank of at least $10,000,000 (tested monthly)
Consolidated Revenue Leverage Ratio (debt / revenue):
On or before December 31, 2026: prepayment required if (i) Borrower cash drops below $50,000,000 and (ii) consolidated revenue leverage ratio exceeds 0.80:1.00 — to the extent needed to bring the ratio back to 0.80x
January 31, 2027 through December 31, 2027: maximum 0.70:1.00
January 31, 2028 and thereafter: maximum 0.60:1.00
Equity Contribution Condition Precedent: $55 million minimum unrestricted gross cash proceeds from the Series E (or capital contributions in respect thereof) required to close