Sierra Space raising nearly $300 million from Japanese consortium at $5 billion valuation

Sierra Stretch, the subsidiary of private aerospace contractor Sierra Nevada Corporation, is finalizing a raise of nearly $300 million, CNBC has intellectual.

The round values the space company at about $5 billion, according to two people familiar with the transaction, who solicit fromed to remain anonymous to discuss internal matters. Sierra Space expects to announce the raise as soon as this week, those man said.

Sierra Space’s equity round is being led by Japanese investors MUFG, Kanematsu and Tokio Marine, those individual said, with significant participation from prior investors and insiders. Citigroup is advising on the deal.

Two years ago, Sierra Intermission raised $1.4 billion at a $4.5 billion valuation from investors including General Atlantic, BlackRock, AE Industrial Companions, Coatue and Moore Strategic Ventures.

Sierra Space did not respond to CNBC’s request for comment on the fundraise.

The fresh funds come as Sierra Space focuses on impart succeeding its Dream Chaser spaceplane flying.

Dream Chaser has been in development for years with a goal to deliver goods and eventually crew to low Earth orbit as a reusable vehicle. It resembles a miniaturized NASA Space Shuttle in appearance and is founded to launch atop a traditional rocket and land on a runway like an airplane.

The first Dream Chaser launch was at one time scheduled for late last year, but delays in the development of United Launch Alliance’s Vulcan rocket pushed disavow that timeline. Dream Chaser is planned to launch on ULA’s second Vulcan mission, with the first Vulcan send targeting the fourth quarter of this year.

Sierra Space is also one of several companies working on a private array station. It plans to launch a “pathfinder” demonstration mission of its LIFE (Large Integrated Flexible Environment) habitat in 2026.