Rocket Lab Corp. (NASDAQ:RKLB) said Tuesday it has fully financed its pending acquisition of Iridium Communications Inc. after completing a $1.94 billion at-the-market equity offering.
The company also secured lender consent to retain Iridium’s existing term loan and canceled a planned $3.6 billion bridge facility.
Rocket Lab Raises $1.94 Billion
Rocket Lab raised about $1.944 billion in gross proceeds by issuing 29.3 million shares through its at-the-market program.
The company plans to use the net proceeds to fund cash payments for the Iridium acquisition.
If the deal does not close, or if funds remain, the company may use the money for future acquisitions, growth initiatives and general corporate purposes.
The transaction is expected to close in mid-2027, subject to regulatory approvals.
Iridium Debt Stays In Place
Iridium also amended its existing credit agreement covering $1.775 billion in outstanding term loans as of June 30.
The amendment allows Rocket Lab’s acquisition without triggering the agreement’s change-of-control provisions. Rocket Lab USA Inc., the company’s main operating subsidiary, will provide an unsecured guarantee for the term loan after closing.
Rocket Lab said the arrangement provides long-term financing supported by Iridium’s free cash flow.
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Rocket Lab Drops $3.6 Billion Bridge Facility
With the equity proceeds, existing liquidity and Iridium’s term loan, the company said it has enough funding to cover the required cash consideration, certain Iridium debt and transaction expenses.
As a result, it terminated the $3.6 billion senior secured bridge facility established when the companies announced the merger agreement on June 28.
Stock Performance And Technical Analysis
Rocket Lab stock rose about 2% Tuesday, outperforming a weak broader market. The Nasdaq fell 0.61%, while the S&P 500 dropped 0.49%.
RKLB remains below its major moving averages. The stock trades about 4.7% below its 20-day SMA of $66.57, 10.6% below its 50-day SMA of $70.96 and 20.8% below its 200-day SMA of $80.12.
However, momentum has started to improve. The MACD is above its signal line, while the histogram is positive. That suggests selling pressure is easing.
Still, the broader technical trend remains bearish. RKLB formed a death cross in August, when its 50-day SMA fell below the 200-day SMA.
Traders are watching $75 as key resistance. The level sits near the 50-day EMA of $73.32. Support stands near $58.50.
Price Action
Rocket Lab shares were up 2.08% at $63.85 Tuesday at the time of publication, according to Benzinga Pro.
Photo via Shutterstock
