Goodwin Advises Rocket Lab in Connection with $3.6 Billion Debt Commitments for its $8 Billion Acquisition of Iridium Communications
The Technology and Debt Finance teams advised Rocket Lab Corporation (Nasdaq: RKLB) in connection with debt financing and capital markets matters in its definitive agreement to acquire Iridium Communications Inc. (Nasdaq: IRDM) in a cash-and-stock transaction, including its commitments from lenders for a $3.6 billion 364-day senior secured bridge term loan facility. Under the terms of the transaction, Iridium stockholders will receive $27 in cash and a number of shares of Rocket Lab common stock calculated pursuant to an exchange ratio (subject to a collar) for each share of Iridium common stock outstanding at the closing. The collar is banded from $67.50 to $112.50. The transaction has a notional value of $54 per share of Iridium common stock, implying an enterprise value for Iridium of approximately $8 billion.
The transaction, which was unanimously approved by the boards of directors of both companies, will give Rocket Lab an immediate foothold in space-based applications, including both proprietary and standards-based satellite Internet of Things (IoT) and direct-to-device (D2D), positioning, navigation, and timing (PNT), and critical safety-of-life services, creating a formidable challenger in the global telecom market. The transaction is expected to be completed in mid-2027, subject to the satisfaction of customary closing conditions, including approval of Iridium stockholders and required regulatory approvals.
Rocket Lab is a leading space company that provides launch services, spacecraft, payloads, and satellite components serving commercial, government, and national security markets. Rocket Lab’s Electron rocket is the world’s most frequently launched orbital small rocket; its HASTE rocket provides hypersonic test launch capability for the US government and allied nations; and its Neutron launch vehicle in development will unlock medium launch for constellation deployment, national security, and exploration missions. Rocket Lab’s spacecraft and satellite components have enabled more than 1,700 missions spanning commercial, defense, and national security missions, including GPS, constellations, and exploration missions to the Moon, Mars, and Venus. Rocket Lab is a publicly listed company on the Nasdaq stock exchange (RKLB).
The Goodwin team was led by Stuart Ogg, Melissa Schwab Wright, and Dylan Brown and included Ali O’Keeffe, Emily Josef, Anna Gunning, Sne Sadhu, Reidar Composano, Ora Grinberg, Garrett Gaughan, Jess Tomlin, Justin Pierce, and Carrie Miller.
For more information, please read the press release.