The $1.944 billion figure is before commissions and offering expenses. Rocket Lab said any excess proceeds, or the funds if the Iridium acquisition is not completed, would be used for future growth, potential acquisitions, general corporate purposes and working capital.
Iridium also amended its existing credit agreement on Sept. 15 to accommodate the proposed change of control arising from the acquisition. The amendment covers $1.775 billion of term loans outstanding as of June 30, 2026 and was approved by the required lenders.
Under the revised arrangement, Rocket Lab USA Inc., Rocket Lab’s primary operating subsidiary and the expected parent company of Iridium, will provide an unsecured guarantee of the Iridium term loan once the transaction closes. Rocket Lab said the amendment will provide cost-effective permanent financing after completion of the acquisition, supported by Iridium’s free cash flow.
Rocket Lab said the retained Iridium term loan, proceeds raised through the equity programme and other unrestricted cash and cash equivalents are sufficient to fund the required cash consideration. The available financing will also cover repayment of certain Iridium debt other than the retained term loan, along with transaction-related fees and expenses.
Following completion of the change-of-control amendment, Rocket Lab terminated the $3.6 billion senior secured debt bridge commitment it had arranged when the Iridium acquisition agreement was signed on June 28, 2026. The bridge facility is no longer required under the financing structure now in place.
The revised funding package leaves the $1.775 billion Iridium term loan outstanding after the acquisition while replacing the need for temporary bridge financing. Rocket Lab described completion of the equity raise and the credit agreement amendment as major milestones toward closing the transaction.
The company expects the Iridium acquisition to be completed in mid-2027. Rocket Lab said it now has sufficient financing to meet the acquisition’s cash consideration, specified debt repayment obligations and related costs.
