Rocket Lab secures financing for $8 billion Iridium acquisition

Rocket Lab has secured the necessary financing to proceed with its approximately $8 billion acquisition of Iridium Communications. The company raised $1.944 billion through a gross open-market issuance of 29.3 million new shares, effectively covering the cash requirements for the deal and allowing the company to cancel a $3.6 billion bridge loan previously arranged with Deutsche Bank and Wells Fargo.

To facilitate the transition, Iridium's creditors approved a modification of a $1.775 billion term credit line, preventing a change-of-control clause from triggering an early loan repayment. Rocket Lab USA has committed to acting as an unguaranteed guarantor for the parent company once the merger is finalized.

The transaction, which aims to create an integrated space operator combining launch capabilities with satellite infrastructure, faces several upcoming milestones. Iridium shareholders are scheduled to vote on the proposal on September 24, with the offer consisting of $27 in cash per share plus a stock exchange of between 0.24 and 0.4 Rocket Lab shares. Additionally, the Federal Communications Commission (FCC) has accepted the license transfer application, with a comment period open until November 9. CFO Adam Spice anticipates the final closing of the deal by the second quarter of 2027.