Summary by Futu AI
On December 29, 2023, Rocket Lab USA, Inc. and its subsidiaries, collectively known as the Borrowers, entered into a significant financing agreement with Trinity Capital, Inc. The Master Equipment Financing Agreement provides Rocket Lab with a Conditional Commitment of up to $120 million for equipment financing. The agreement stipulates an initial draw of $70 million and a subsequent $40 million on the effective date, with repayment over five years starting January 2024. Additional draws of $30 million and $20 million are available under certain conditions until mid-2025. The financing is secured by a first priority lien on the financed equipment and, while the Blanket Lien Draw is outstanding, on substantially all of the Borrowers' assets, including intellectual property. Alongside the Loan Agreement, Rocket Lab issued a warrant to Trinity Capital for the purchase of up to 728,835 shares of common stock at $4.87 per share, exercisable until December 29, 2027. Furthermore, the proceeds from the initial draws were used to repay and terminate the existing secured term loan with Hercules Capital, Inc., which had an outstanding balance of over $108 million.