Rocket Lab to Buy Iridium for $8 Billion with $3.6B Bridge Loan Financing
RKLB•Rocket Lab will acquire Iridium for $8bn, paying $27 cash plus Rocket Lab shares based on an exchange ratio collar between $67.50 and $112.50, valuing Iridium at $54 per share. The deal, financed partly by a $3.6bn bridge loan, is expected to close in mid-2027 pending regulatory and shareholder approvals.
1. Deal Structure
Rocket Lab will acquire all outstanding Iridium shares for $54 each, comprising $27 in cash and Rocket Lab stock determined by an exchange ratio collar ranging from $67.50 to $112.50. Final share allocations and collar mechanics will be detailed in forthcoming SEC filings.
2. Financing
A $3.6bn 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo will finance the cash component, supplemented by Rocket Lab’s cash reserves and additional debt and equity sources. The company’s leverage profile will depend on final bridge drawdowns and follow-on financing.
3. Strategic Rationale
The combination merges Rocket Lab’s launch services and manufacturing capabilities with Iridium’s global satellite network of over 2.55 million active subscribers. Management expects vertical integration to accelerate constellation deployment, unlock new markets, and enhance long-term revenue and EBITDA growth.
4. Timeline and Approvals
The transaction is slated to close in mid-2027, subject to customary closing conditions, Iridium shareholder consent, and necessary regulatory clearances. Both boards have unanimously approved the deal, with Iridium directors committed to vote in favor.
