Rocket Lab USA (RKLB) has released an update to notify the public and investors about an entry into a material definitive agreement.
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Rocket Lab USA, Inc. recently issued $355 million of 4.250% Convertible Senior Notes due 2029, with an option for initial purchasers to buy additional notes, which they fully exercised adding $55 million to the total. These notes are senior unsecured obligations, accruing interest semi-annually, convertible under certain conditions, and may be redeemed by the company after February 2027, subject to specific terms. To manage potential dilution from conversions, Rocket Lab has also entered into capped call transactions costing around $43.2 million, which could provide the company with stock or cash, depending on the common stock’s market price relative to the strike price of these transactions.
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For a comprehensive understanding of the announcement, you can read the full document here.