Rocket Lab has completed a $1.944 billion equity offering and secured lender consent to retain Iridium Communications’ existing term loan after its planned acquisition. Together with available cash, those steps provide sufficient funding for the transaction’s cash payments, specified debt repayments and closing costs. Rocket Lab has terminated a $3.6 billion bridge financing commitment, removing a major financing uncertainty ahead of the deal’s expected mid-2027 close.
Rocket Lab raised the $1.944 billion in gross proceeds by issuing 29.3 million shares through an at-the-market offering. It intends to use the net proceeds for cash payments under the acquisition agreement. If the transaction does not close, or if proceeds remain afterward, the company may use the money for future growth, potential acquisitions, general corporate purposes and working capital.
On September 15, Iridium obtained the required lender consent to amend the change-of-control terms of its existing credit agreement. The amendment allows Rocket Lab’s acquisition to proceed without triggering that provision for Iridium’s $1.775 billion in outstanding term loans. At closing, Rocket Lab USA, the buyer’s principal operating subsidiary and Iridium’s anticipated parent, will provide an unsecured guarantee of the loan.
Announced in June, the cash-and-stock acquisition values Iridium at approximately $8 billion on an enterprise-value basis. It would add a global satellite communications network to Rocket Lab’s launch, spacecraft and components businesses. Completing the financing removes a major hurdle, but the acquisition has yet to close.
Iridium stockholder approval and regulatory approvals remain outstanding. Rocket Lab’s registration statement became effective on August 26, 2026, when Iridium filed its definitive proxy statement and Rocket Lab filed its final prospectus. The companies continue to target a mid-2027 closing.
