Why Rocket Lab Shares Are Rising Today

Rocket Lab USA, Inc RKLB shares are trading higher in the premarket session on Friday after diving over 17% yesterday.

The company disclosed the pricing of its previously announced private offering of $300 million aggregate principal amount of 4.250% convertible senior notes due 2029. The offering was upsized from the previously announced offering size of $275.0 million.

Rocket Lab granted the initial purchasers of the notes an option to purchase, for settlement, within 13 days from, and including the date the notes are first issued, up to an additional $55 million aggregate principal amount of the notes. 

The offering of the notes is expected to close on February 6, 2024, subject to customary closing conditions.

Rocket Lab also reported preliminary financial results for the fourth quarter and announced the successful first election mission launch of 2024, a space-junk focused mission for Spire Global.

The company said it expects fourth-quarter revenues of $59 million to $61 million, gross margins of approximately 24.8% to 26.8%, and a net loss of $(49) million to $(52.5) million.

Rocket Lab is scheduled to report fourth-quarter financial results on February 27. The company is expected to report a quarterly loss of 10 cents per share and revenue of $65.968 million, according to Benzinga Pro.

Price Action: RKLB shares are trading higher by 3.48% to $4.16 on the last check Friday.