Rocket Lab Fully Funds Iridium Buyout With $1.94B ATM, Drops Bridge Loan
RKLB sits 70% above its 52-week low of $37.57.
Summary
Rocket Lab has fully financed its $8B acquisition of Iridium after completing a $1.94B at-the-market equity offering, issuing 29.3M shares. The company also terminated its $3.6B bridge facility and secured lender consent to retain Iridium's existing $1.775B term loan without triggering change-of-control provisions. This removes a major financing overhang and shifts the deal's expected close to mid-2027, subject to regulatory approvals. The equity raise is dilutive but was executed at a price near current levels, and the stock rose 2% on the news, outperforming a weak market. The financing structure now relies on Iridium's free cash flow to service the retained debt, reducing near-term refinancing risk. Watch for the shareholder vote on September 24, 2026, and any regulatory updates that could affect the mid-2027 closing timeline.
At the time of this announcement, RKLB was trading at $63.70 on NASDAQ in the Technology sector, with a market capitalization of approximately $38.1B. The 52-week trading range was $37.57 to $151.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.