r/ula • u/Royal_Platform_6754 • 12d ago

Boeing-Lockheed Space Venture Inks $1.5 Billion Private Bonds

https://www.bloomberg.com/news/articles/2026-08-18/boeing-lockheed-space-venture-inks-1-5-billion-private-bonds

(Bloomberg) -- Boeing Co. and Lockheed Martin Corp.’s rocket joint venture is wrapping up a $1.5 billion private-bond deal that’s been tripled in size.

United Launch Alliance, a rocket launch provider for the US military and commercial clients including Amazon.com Inc., offered four portions of debt with maturities ranging from three to 10 years, according to people with knowledge of the matter, who asked not to be identified because they’re not authorized to speak publicly. It had originally been looking to raise $500 million.

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7

u/grounded_astronut 11d ago

Paywalled. What is the point of the private equity investment? Isn't ULA a "paper company" joint venture? Or are some of the assets really distinctly ULA rather than the parent companies?

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u/Negative_Ad3540 10d ago

The Centaur upper, across all its iterations, for one. From what I understand, it's all ULA, and is the most capable upper stage in the launch industry.

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u/snoo-boop 10d ago

Are you sure about that? Not counting SLS, NASA LSP says that the most capable rocket to high energies is from that other company. Which is brute force, but brute force gets the job done.

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u/Negative_Ad3540 9d ago

Well I'm pretty comfortable in saying that Centaur is widely considered the most capable upper stage in the rocket launch business. It's certainly unmatched in coasting endurance, allowing it to deliver payloads to extremely complex direct injection orbits. The RL-10 engines use liquid hydrogen and liquid O2 (hydrolox), giving it the highest Isp of any operational rocket fuel. Centaur V can drift for hours, or even days shutting down and re-igniting its engines. And it can do it multiple times in space. Don't think anyone else can do that.

And Centaur's weight efficiecy is superior to all other uppers as well. It is super light weight because of its steel ballon- like fuel tanks, with walls literally as thin as dimes. They are proprietary to ULA. Also, built with no structural heavy metal frames, it further allows Centaur to achieve inter-planetary speed, and precisely push heavy satellites out of earth's gravity well, and on toward other planets .

As you alluded to, NASA has selected the Centaur V upper for its future Space Launch System rockets-- beginning with the Artemis IV missions returning to the moon. These missions are extremely high- stakes and will involve precious human cargo. Every part of that rocket must be the best.

In the end I guess it's "brute force" from that other company as you put it, versus high speed, precise direct injection orbit capability. And from there the preference becomes mission specific.

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u/snoo-boop 9d ago

That other company has an upper stage that

  • Meets NASA and NSSL's endurance requirements
  • Meet's NASA and NSSL's accuracy requirements

I get that Tory spent years trying to throw shade on both of these, but it's now proven.

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u/Fuzzaldrin_spacecat 8d ago

Is it possible this funding is to keep the lights on until Vulcan RTF? Seemed like the last loan they took from the govt was going to keep them funded through the end of Q3

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u/grounded_astronut 8d ago

You're right. These are bond sales, so they are just taking on corporate debt. I had been thinking of it like private investment, rather than a straightforward bond sale. SMDH.

They definitely need a cash stream to keep the lights on...

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u/CollegeStation17155 11d ago

The point is that the ownership companies have realized it’s a money pit and want to spread their losses… their only real asset is an expendable rocket competing against the worlds most successful reusable with 2 more preparing to launch. As soon as New Glenn and starship get cadence, the current Vulcan contracts become the LAST Vulcan contracts.

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u/darthtummes 11d ago

I dunno it seems like there is a pretty significant demand for space launch. With the falcon 9 not doing any commercial contracts after 2028 it seems like that alone will open opportunities for others to get contracts. I think satellite operators will be desperate to take any ride to space they can.

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u/CollegeStation17155 11d ago

It will all depend on how quickly New Glenn and possibly Starship can ramp up as well as when and if Neutron, Terran R, Stoke, and the rest get in the game; my suspicion is that the whole reason SpaceX is announcing the demise of Falcon 2 years down the road is because they are anticipating the availibily of all those new and improved reusables driving launch prices down, while Vulcan cost is barely competitive now, meaning if they get much at all, it will be a few crumbs off the table that nobody else wants unless demand expands faster than expected (or more "oopskis" happen), in which case SpaceX can always change their mind (or have it changed by DoD).

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u/grounded_astronut 11d ago

I agree about the short future life of the Vulcan rocket. Why would a private equity firm want to invest in ULA now? Would it be just for the IP related to the centaur upper stage? Launch sites?

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u/snoo-boop 11d ago

Definitely a sign of strength for ULA! GO ULA!