Rocket Lab has completed a $1.944 billion at-the-market equity raise for its pending Iridium Communications acquisition, issuing about 29.3 million new shares and eliminating the $3.6 billion bridge loan commitment that originally backstopped the cash portion of the deal.
The share sale puts part of the acquisition’s financing burden onto Rocket Lab shareholders before the transaction closes. The 29.3 million shares equal roughly 4.9% of the 598.35 million common shares Rocket Lab reported outstanding as of August 5.
Based on gross proceeds, the ATM generated about $66.35 per share on average, before commissions and offering expenses.
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The company said the ATM proceeds, Iridium’s amended $1.775 billion term loan facility, and other available cash and funding sources are sufficient to cover the acquisition’s anticipated cash payments.
The structure replaces the temporary debt package arranged when Rocket Lab signed the Iridium merger agreement in June. Deutsche Bank and Wells Fargo had committed to a 364-day, $3.6 billion senior secured bridge facility. Rocket Lab formally terminated that commitment on September 15.
Iridium also secured lender consent allowing its existing $1.775 billion of term loans, outstanding as of June 30, to remain in place after the acquisition. Rocket Lab USA will guarantee the facility once the transaction closes.
The amendment comes with higher post-closing financing costs. The term loans will carry SOFR plus 2.50% to 3.00%, or a base-rate margin of 1.50% to 2.00%, depending on Rocket Lab’s credit ratings. Certain prepayments after the first anniversary of closing will also carry a 1.00% exit fee, while qualifying repricing transactions face a 1.00% premium.
Rocket Lab agreed in June to acquire Iridium for a notional $54 per share, split between $27 in cash and Rocket Lab stock subject to an exchange-ratio collar. The companies valued the transaction at about $8.0 billion on an enterprise-value basis.
The deal remains pending. Iridium shareholders are scheduled to vote on September 24, and Rocket Lab continues to target a mid-2027 closing subject to remaining regulatory approvals and other conditions.
