Rocket Lab Completes $1.944 Billion ATM Offering for Iridium Acquisition

Rocket Lab Corporation has successfully completed a $1.944 billion At-The-Market (ATM) equity offering, securing the necessary funds to fully finance its pending acquisition of Iridium Communications Inc. The transaction, expected to close in mid-2027, is subject to regulatory approvals.

The ATM program, which issued 29.3 million shares, raised the required cash to fund the acquisition. Rocket Lab intends to use the net proceeds for the cash payments under the Iridium deal. If there are excess funds, they will be allocated to future growth initiatives, including potential acquisitions and general corporate and working capital purposes.

In a related move, Iridium amended its existing $1.775 billion credit facility to permit the change of control. Rocket Lab USA, Inc., a primary operating subsidiary of Rocket Lab, will provide an unsecured guarantee of the Iridium Term Loan upon the closing of the acquisition. This amendment ensures cost-effective, permanent financing for the transaction, backed by Iridium’s strong free cash flow.

Rocket Lab also terminated its $3.6 billion senior secured bridge facility, de-risking the capital structure ahead of the targeted close of the acquisition. The completion of the Change of Control Amendment and the ATM program marks significant progress in Rocket Lab’s pending acquisition of Iridium.

The transaction is expected to bring together two leading players in the space industry. Rocket Lab, known for its small-lift rockets and satellite deployment capabilities, will integrate with Iridium’s global satellite network, enhancing its offerings in constellation deployment and space systems.

Rocket Lab’s CEO, Peter Beck, stated, "This funding milestone is a critical step in our acquisition of Iridium. It ensures we have the financial flexibility to execute our plans and deliver on the combined company's potential."

The acquisition is anticipated to strengthen Rocket Lab’s position in the global space market, combining its launch services with Iridium’s robust satellite infrastructure. Both companies aim to leverage their combined resources to drive innovation and expand their services in the rapidly evolving space industry.

With the completion of these key milestones, Rocket Lab is well-positioned to proceed with the acquisition, which is expected to significantly enhance its capabilities and market presence.