Rocket Lab fully finances its $8bn Iridium buyout
What happened
Rocket Lab raised $1.944bn in an at-the-market equity sale and amended Iridium's $1.775bn term loan for a change-of-control carve-out, replacing the $3.6bn bridge loan it arranged in June. Rocket Lab USA will guarantee the term loan at closing, giving the Iridium acquisition permanent financing backed by Iridium's own cash flow instead of a short-term bridge. The de-risking lands nine days before Iridium's Sept 24 shareholder vote on the merger.
Read-across for SES
Rocket Lab is SES's most direct verticalization rival, competing for the same USSF government-services work Iridium holds, including the EMSS renewal due by March 2027. Permanent, cheap financing removes the last visible execution risk before the shareholder vote. Rocket Lab can now pursue that pipeline from a stronger balance sheet than it had in June.
As the brief filed it
[AGE: 5h] Rocket Lab raised $1.94bn in equity and secured Iridium's $1.775bn term loan, cancelling the $3.6bn bridge loan it used to fund its $8bn Iridium buyout.