This article first appeared on GuruFocus.
Rocket Lab USA (RKLB) rose about 3% in early Tuesday trading after it completed an equity sale that provided about $1.944 billion in gross proceeds to support its planned purchase of Iridium Communications.
The company sold 29.3 million shares through an at-the-market program. The proceeds are intended to cover the cash component of the transaction, with any remaining funds available for growth initiatives and general corporate purposes.
The financing progress came as Iridium amended a $1.775 billion term loan tied to the proposed combination. Rocket Lab will provide an unsecured guarantee for that borrowing after the transaction closes. The company also ended a previously arranged $3.6 billion bridge financing commitment.
Rocket Lab agreed in June to buy Iridium in a cash-and-stock transaction that valued the satellite operator at roughly $8 billion, or $54 per share. The deal is expected to close in mid-2027.
Rocket Lab Chief Financial Officer Adam Spice said the combination could broaden the company beyond launch services and spacecraft production by adding satellite network operations and related services.
