Tim Sheehy, the Republican candidate poised to turn Montana and the US Senate red, has incurred $180 million in losses over the past five and a half years while leading the Nasdaq-listed aerial firefighting company Bridger Aerospace.
There is a risk of the company going bankrupt between Sheehy winning next week and his assumption of office in January, potentially becoming one of the wealthiest individuals to enter the Senate. With the US fire season coming to a close, the results that will indicate Bridger’s ability to survive until the next season are expected later in November.
This situation raises a question about what constitutes success or failure in the eyes of the historical party of American business.
The 37-year-old former Navy Seal has made Bridger a centerpiece of his campaign, touting it as a “job creator” in a race that could determine control of the US Senate and influence the agenda of a future presidential administration.
Mike Berg, a Republican communications director, attributed Bridger’s struggles to Sheehy’s opponent, accusing the three-term Democratic incumbent Jon Tester of trying to undermine Sheehy’s business in Montana and discredit his military service to win the election. Despite these allegations, Sheehy founded Bridger in 2014 after leaving the Navy and managed it until July when he stepped down, having gained personal wealth from various side projects related to the company.
In addition to his involvement with Bridger, Sheehy engaged in other ventures, including a business that offers training to Bridger’s pilots. He also sold and leased aircraft to Bridger, securing contracts for two planes shortly before announcing his Senate bid, which would pay him $1.7 million annually.
One of Sheehy’s successful ancillary businesses was Ascent Vision, a company specializing in aerial surveillance and anti-drone technology that was spun off from Bridger in 2015 and sold for $350 million in 2020.
Despite facing challenges, Sheehy remains confident in Bridger’s financial position and growth prospects. The company has faced debt covenant violations, stock sales to meet cash reserve requirements, and auditor warnings about its ability to continue operations. Its largest obligation is a $160 million municipal bond raised for industrial development, primarily used to pay off previous Blackstone financing.
Sheehy’s campaign, which has received significant financial support from billionaires, including Blackstone founder Stephen Schwarzman, portrays Bridger as a success story and a rare listed company in Montana.
However, Bridger’s journey to the public market through a SPAC merger in January 2023 resulted in a significant decline in its market valuation from $1 billion on the first day of trading to $130 million. Financial projections in the company’s 2022 bond prospectus overestimated revenues and underestimated expenses, leading to challenges in meeting debt obligations.
Despite these difficulties, Bridger’s spokesperson remains optimistic about the company’s future performance and ability to meet its financial commitments. The company’s recent financial results have shown improvement, and Sheehy’s departure in July has paved the way for new leadership under CEO Sam Davis.
As Montanans prepare to vote, the outcome of the election could have significant implications for Bridger’s future and Sheehy’s political career.