Rocket Lab Raises $1.9 Billion in Stock Sale to Fund Iridium Acquisition
Rocket Lab has completed a $1.94 billion at-the-market stock offering, selling approximately 29.3 million new shares to fund the cash portion of its acquisition of satellite operator Iridium Communications. The company also terminated a previously arranged $3.6 billion bridge loan that was intended as backup financing for the deal. The transaction values Iridium at about $8 billion including debt, with Rocket Lab offering shareholders $27 per share in cash and additional shares upon closing. This move avoids significant new borrowing by Rocket Lab, which is not yet profitable but has shown strong revenue growth recently. The stock sale covers roughly two-thirds of the required funds, while existing cash reserves cover the remainder. Rocket Lab's decision to raise capital through equity rather than debt aims to reduce financial risk in a capital-intensive industry and avoid refinancing obligations within one year. Iridium brings $872 million in 2025 revenue but also carries its own $1.8 billion term loan, which Rocket Lab will assume.
Topics: acquisition dilution funding stock sale