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Iridium's $1.775B term loans survive Rocket Lab takeover with lender consent; margins reset to SOFR+250-300bps
Peter Beck· Rocket Lab· Space· 2026-09-15· about Iridium Communications Inc. (term loan guaranteed by Rocket Lab USA, Inc.) (IRDM)
“As a result of Consent and Amendment No. 4, the Transaction will not constitute a change of control under the Amended Iridium Credit Agreement and the term loans outstanding under the Amended Iridium Credit Agreement will be permitted to remain outstanding after closing of the Transaction. As part of the Change of Control Amendment, Rocket Lab USA, Inc., the Company's primary operating subsidiary and anticipated parent company of Iridium, will provide an unsecured guarantee of the Iridium Term Loan upon the closing of the Iridium Acquisition.”
Why it matters
Iridium's $1.775B term loan avoids a change-of-control mandatory repayment and stays outstanding post-close, now backed by an unsecured guarantee from Rocket Lab's primary operating subsidiary — a material change to the loan's credit profile (margin stepped up to SOFR+250-300bps, 1% exit fee after year one, 1% repricing premium).
Investment implication
Leveraged-loan and credit investors retain exposure to the combined entity rather than being repaid at par, with added Rocket Lab credit support; for RKLB equity holders, the amendment locks in cheaper permanent financing than the terminated bridge, and the ~$1.775B of assumed Iridium debt should be built into post-close leverage models.