Rocket Lab (RKLB) Stock Jumps 4% as $1.9 Billion Raise Clears Path for Iridium Takeover

TLDR

• Rocket Lab completed a $1.944 billion at-the-market equity offering, issuing 29.3 million shares to finance its Iridium acquisition.
• The proceeds, combined with Iridium’s existing term loans and available cash, are enough to cover the full cash consideration and related costs.
• Iridium amended its $1.775 billion credit facility to allow the change of control triggered by the deal.
• Rocket Lab terminated its $3.6 billion bridge facility, simplifying its capital structure ahead of close.
• The acquisition is expected to close in mid-2027, subject to regulatory and stockholder approvals.

Rocket Lab (RKLB) stock rose 4.46% after the company confirmed it has locked in the financing needed for its planned takeover of Iridium Communications (IRDM).

Rocket Lab USA, Inc., RKLB

The Long Beach-based company raised $1.944 billion through an at-the-market equity offering, issuing 29.3 million shares. The capital raise is a key step toward completing the cash-and-stock deal to acquire Iridium.

Together with Iridium’s existing debt and Rocket Lab’s available liquidity, the company says it now has enough funds to cover all required cash payments, repay certain Iridium debt, and handle transaction fees.

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