The company completed its $1.94 billion at-the-market (ATM) stock offering, selling about 29.3 million shares.
- Rocket Lab has terminated the $3.6 billion bridge facility it signed with Deutsche Bank and Wells Fargo earlier this year.
- Combined with available cash and Iridium’s existing debt, Rocket Lab said it has enough funding to cover the cash portion of the acquisition.
- The Iridium acquisition is expected to close in mid-2027
Rocket Lab (RKLB) was in the spotlight on Tuesday after the space tech firm secured the funding needed for its planned $8 billion acquisition of Iridium Communications (IRDM), removing a major financing overhang.
The company completed its $1.94 billion at-the-market (ATM) stock offering, selling about 29.3 million shares. Combined with available cash and Iridium’s existing debt, Rocket Lab said it now has enough funding to cover the cash portion of the acquisition and related expenses.
At the time of writing, RKLB shares were up 2% in pre-market trading.
RKLB Says $3.6 Billion Bridge Loan Is Not Needed
When Rocket Lab announced the Iridium acquisition in June, Deutsche Bank and Wells Fargo committed to a $3.6 billion, 364-day bridge loan to help finance the deal. Bridge loans are temporary loans to ensure a buyer has enough money to complete an acquisition while it arranges longer-term funding.
Rocket Lab recently outlined plans to replace the bridge loan with equity and cheaper permanent debt. Iridium’s lenders have agreed to the changes, allowing its existing $1.775 billion term loan to remain in place after the acquisition. As a result, Rocket Lab has terminated the $3.6 billion bridge facility.
Why RKLB Is Pursuing Iridium
The acquisition would significantly expand Rocket Lab beyond launching rockets and manufacturing spacecraft. Iridium operates a global low-Earth-orbit satellite communications network and has more than 2.55 million subscribers. Its L-band spectrum supports communications across government, defense, aviation, maritime and commercial markets.
The combination would allow Rocket Lab to build satellites, launch them and operate communications services through its own network, as it looks to take on rivals including AST SpaceMobile (ASTS) and SpaceX (SPCX).
Iridium also generated $871.7 million in revenue and $495 million in operational earnings before interest, tax, depreciation and amortization (EBITDA) in 2025. The deal is expected to close in mid-2027. Last week, Raymond James analyst Brian Gesuale said the Iridium acquisition will offer significant upside for RKLB, though he warned against execution risks.
Speaking at the World Space Business Week earlier, Rocket Lab’s CFO Adam Spice said the Iridium acquisition would turn the company from a launch provider into a fully integrated space operator, adding that the combination would double the company’s size “overnight.”
Retail Sees 8-10% Rally Ahead
Retail sentiment surrounding RKLB on Stocktwits remained in the ‘bearish’ zone over the past 24 hours.
One user expects the stock to “fly.”
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Another user expects “8-10% gains for two or three days in a row.”
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RKLB stock has shed more than 17% so far in 2026, outperforming ASTS’ 28% decline, Intuitive Machine’s (LUNR) 22% fall, and Planet Labs’ (PL) 20.6% drop.
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