Rocket Lab Completes $1.94B ATM Offering to Fully Fund Iridium Acquisition

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Rocket Lab has completed a $1.944 billion at-the-market equity offering as it moves closer to acquiring satellite communications company Iridium Communications. Announced on September 15, the financing provides Rocket Lab with the required cash consideration for the transaction when combined with available liquidity.

The company says the acquisition is now fully financed, although the deal still requires regulatory approvals and isn’t expected to close until mid-2027.

Rocket Lab Raises $1.944 Billion

Rocket Lab completed its previously announced ATM program by issuing approximately 29.3 million shares. The offering generated around $1.944 billion in gross proceeds before commissions and other expenses.

The company plans to use the net proceeds primarily for cash payments connected with the Iridium acquisition. If the deal doesn’t close, or if some of the money isn’t required, Rocket Lab says the remaining funds may support future growth, possible acquisitions, working capital, and other corporate purposes.

Iridium’s Existing Debt Stays in Place

Another important part of the financing involves Iridium’s existing term loan facility.

Iridium had approximately $1.775 billion in outstanding term loans as of June 30. Its lenders have now approved an amendment allowing the debt to remain in place following Rocket Lab’s acquisition.

The amendment changes the credit agreement so the transaction won’t trigger the facility’s change-of-control provisions. After closing, Rocket Lab USA is expected to provide an unsecured guarantee of the Iridium term loan.

This gives Rocket Lab access to what it describes as cost-effective permanent financing supported by Iridium’s free cash flow.

$3.6 Billion Bridge Facility Cancelled

With the equity offering completed and Iridium’s existing financing amended, Rocket Lab has terminated the $3.6 billion senior secured bridge facility arranged when the merger agreement was announced in June.

Bridge financing is generally designed as temporary funding until a company secures a longer-term solution. Removing the facility means Rocket Lab will no longer need to rely on that large temporary debt commitment to complete the acquisition.

The ATM proceeds, Iridium term loan, and Rocket Lab’s available unrestricted cash are expected to cover the required cash consideration, certain Iridium debt repayments, and transaction-related fees.

Why Iridium Matters to Rocket Lab

The acquisition represents a significant expansion of Rocket Lab’s business beyond launches and spacecraft manufacturing.

Iridium operates a global satellite communications network providing connectivity to customers across industries including aviation, maritime operations, government, emergency services, and transportation.

Bringing Iridium into Rocket Lab would therefore add an established communications network and recurring satellite services business to a company already involved in launch vehicles, satellites, spacecraft components, and space systems.

The Deal Still Has Steps Ahead

Completing the financing removes one of the biggest uncertainties surrounding the transaction, but the acquisition isn’t finished yet.

Rocket Lab expects the deal to close in mid-2027, subject to remaining regulatory approvals and other customary closing requirements.

For now, the September financing announcement marks an important milestone. Rocket Lab has secured the funding structure it expects to use for the acquisition, removed its $3.6 billion bridge commitment, and taken another major step toward combining its growing space infrastructure business with Iridium’s global satellite communications network.