What's Going On With Rocket Lab Stock Thursday?

Rocket Lab USA Inc (NASDAQ:RKLB) shares are trading lower Thursday morning after the company announced a proposed offering.

What Happened: After the market close on Wednesday, Rocket Lab announced it commenced a private offering with institutional buyers of $275 million worth of convertible senior notes due 2029.

Rocket Lab intends to use a portion of the net proceeds from the offering to pay the cost of entering into capped call transactions with one or more initial purchasers. The company also plans to use $40 million to repay a portion of its borrowings under its equipment financing agreement.

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.

“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,” said Peter Beck, founder and CEO of Rocket Lab.

Rocket Lab is scheduled to report fourth-quarter financial results on Feb. 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.

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RKLB Price Action: Rocket Lab shares were down 12.2% at $4.25 Thursday morning, according to Benzinga Pro.

Photo: courtesy of Rocket Lab.