- Rocket Lab has finalized equity financing tied to its pending Iridium deal
- Iridium’s term loan was amended and a bridge facility was canceled
- The Iridium acquisition remains on track for a mid-2027 close
Rocket Lab has completed a $1.944 billion at-the-market, or ATM, equity offering, fully financing its pending acquisition of Iridium Communications alongside available liquidity ahead of the transaction’s expected close in mid-2027, subject to regulatory approvals.
How Did Rocket Lab Complete the ATM Offering?
The company said Tuesday it closed its previously announced at-the-market share sale program, generating approximately $1.94 billion in gross proceeds through the issuance of 29.3 million shares before commissions and offering expenses.
In June, Rocket Lab agreed to acquire Iridium in a cash-and-stock transaction valued at approximately $8 billion as part of a push to establish an end-to-end space company.
Rocket Lab said it plans to direct the net proceeds toward cash payments required under the Iridium acquisition. Should the transaction not close, or if proceeds from the offering exceed what is needed, the company said it would apply the funds toward future growth initiatives, including potential acquisitions, along with general corporate and working capital needs.
What Changes Did Rocket Lab Make to Iridium’s Debt Financing?
Iridium entered into a change of control amendment to its existing term loan facility, covering $1.775 billion in outstanding loans as of June 30, to secure lender consent carving out Rocket Lab’s pending acquisition from the agreement’s change-of-control provisions. Under the amendment, Rocket Lab USA, the company’s primary operating subsidiary and Iridium’s anticipated parent following the deal, will provide an unsecured guarantee of the Iridium term loan once the acquisition closes.
Rocket Lab separately terminated the $3.6 billion senior secured bridge facility it had lined up in connection with the merger agreement signed in June, removing that debt commitment from its financing structure. Rocket Lab said the completed amendment and ATM proceeds represent another milestone toward closing the Iridium acquisition, which remains on track for mid-2027.
In August, Rocket Lab disclosed that a federal antitrust review period tied to the transaction had lapsed, alongside the filing of a registration statement with the Securities and Exchange Commission and applications with the Federal Communications Commission to transfer Iridium’s licenses to Rocket Lab.
How Does the Proposed Iridium Deal Align With Rocket Lab’s Broader Strategy?
The proposed Iridium acquisition comes on the heels of several other moves Rocket Lab has made this year.
In March, the company completed its acquisition of Optical Support Inc., adding optical manufacturing capacity in support of national security programs like the Golden Dome. The following month, it acquired Mynaric, bringing laser communications capabilities in-house and expanding its role in the Space Development Agency’s proliferated satellite architecture.
In May, Rocket Lab finalized its acquisition of Motiv Space Systems, folding space robotics and precision spacecraft mechanisms into the company under the new Rocket Lab Robotics unit.
The company also picked up new government mission work during this period, securing NASA task orders to launch the TSIS-2 and PolSIR missions and completing its role in the Space Force’s Victus Haze tactically responsive space mission.
