On February 6, 2024, Rocket Lab USA, Inc. completed the issuance of $355 million in 4.250% Convertible Senior Notes due in 2029. The notes were issued following an indenture agreement with U.S. Bank Trust Company, National Association, serving as trustee. This financial move includes $55 million in additional notes exercised by initial purchasers. The notes are senior, unsecured obligations of Rocket Lab, ranking equally with future senior unsecured debt, and are structurally subordinated to the company's existing and future secured debt. Interest on the notes is payable semi-annually, with the first payment due on August 1, 2024, and the notes will mature on February 1, 2029, unless converted, redeemed, or repurchased prior. The initial conversion rate is set at approximately 195.1029 shares of common stock per $1,000 principal amount...Show More

On February 6, 2024, Rocket Lab USA, Inc. completed the issuance of $355 million in 4.250% Convertible Senior Notes due in 2029. The notes were issued following an indenture agreement with U.S. Bank Trust Company, National Association, serving as trustee. This financial move includes $55 million in additional notes exercised by initial purchasers. The notes are senior, unsecured obligations of Rocket Lab, ranking equally with future senior unsecured debt, and are structurally subordinated to the company's existing and future secured debt. Interest on the notes is payable semi-annually, with the first payment due on August 1, 2024, and the notes will mature on February 1, 2029, unless converted, redeemed, or repurchased prior. The initial conversion rate is set at approximately 195.1029 shares of common stock per $1,000 principal amount of notes, equivalent to a conversion price of around $5.13 per share. Rocket Lab also entered into capped call transactions to reduce potential dilution upon conversion of the notes, costing approximately $43.2 million. The notes were offered to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, without public offering. The proceeds from the offering are intended for general corporate purposes, including potential acquisitions and strategic transactions, and to repay a portion of existing debt under an equipment financing agreement.