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Rocket Lab to raise $275m

February 2, 2024

By Chris Forrester

Rocket Lab is a major supplier of launch and space systems. Its Electron launch vehicle is the second most frequently launched US rocket annually and has delivered more than 176 satellites to orbit for commercial and Government partners, including NASA, the US Air Force and other governmental agencies.

Long Beach-based Rocket Lab, founded in 2006, is also developing Neutron, an advanced 13-tonne payload class, reusable launch vehicle tailored for constellation deployment and interplanetary missions. Rocket Lab’s satellite technology and components have been integrated into more than 1,700 satellite missions globally.

It is looking to raise $275 million (€252,5m) by way of Convertible Senior Notes. The notes will accrue interest payable semi-annually in arrears and will mature on February 1st 2029, unless earlier converted, redeemed or repurchased.

Rocket Lab says it intends to use a portion of the net proceeds from the offering ($40 million) to repay a portion of its borrowings under its equipment financing agreement. Rocket Lab intends to use the remainder of the net proceeds for working capital or other general corporate purposes, which may include potential acquisitions and strategic transactions.

Rocket Lab also issued its Q4 2023 preliminary revenue numbers. It expects revenues to be withing the $59m-$61m range, and thus a net loss of $52.5 million – $49 million.

Rocket Lab has its own launch pads including two in New Zealand and a third in Virginia, US.

Rocket Lab founder and CEO, Peter Beck, said: “Our Q4 included Electron’s successful return to service and our largest contract award to date with the $515 million Space Development Agency’s Tranche 2 Beta award. In addition, our Space Systems business improved year-over year on increased merchant component business. With our 43rd Electron mission now launched, more launches scheduled in 2024 than in any prior year, and a record backlog, we’re excited to continue building on our success delivering end-to-end space solutions to the market. We are also encouraged by progress made against key Neutron development milestones and look forward to introducing new medium lift launch technical capabilities and much needed incremental capacity to the market.”

Categories: Articles, Business, Funding, Satellite

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