- RKLB
- IRDM
This article first appeared on GuruFocus.
Rocket Lab USA (RKLB) rose about 3% in early Tuesday trading after it completed an equity sale that provided about $1.944 billion in gross proceeds to support its planned purchase of Iridium Communications.
The company sold 29.3 million shares through an at-the-market program. The proceeds are intended to cover the cash component of the transaction, with any remaining funds available for growth initiatives and general corporate purposes.
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The financing progress came as Iridium amended a $1.775 billion term loan tied to the proposed combination. Rocket Lab will provide an unsecured guarantee for that borrowing after the transaction closes. The company also ended a previously arranged $3.6 billion bridge financing commitment.
Rocket Lab agreed in June to buy Iridium in a cash-and-stock transaction that valued the satellite operator at roughly $8 billion, or $54 per share. The deal is expected to close in mid-2027.
Rocket Lab Chief Financial Officer Adam Spice said the combination could broaden the company beyond launch services and spacecraft production by adding satellite network operations and related services.
