Maxar Raises $400M Via Secondary Offering For Debt Financing

Space technology company Maxar Technologies Inc MAXR priced the previously announced $400 million worth of shares at $40 per share in a secondary public offering.

• The offer price signifies a 6.5% discount to the Wednesday closing price of $42.79.
• The company granted the underwriters a 30-day option to purchase up to $60 million of additional shares.
• Maxar plans to utilize the offering proceeds to repay a portion of its outstanding 9.75% Senior Secured Notes due 2023 and for general corporate purposes.
• The company, directors, and executive officers agreed to enter into a customary lock-up agreement with the offering’s underwriters.
• Goldman Sachs, Morgan Stanley, and Barclays are the lead book-running managers for the offering, with BofA Securities, J.P. Morgan, and RBC Capital Markets as joint book-running managers.
• Maxar’s long-term debt balance amounted to $2.4 billion as of December 31, 2020.
• MAXR’s stock has gained 353% in the last year.
• Price action: MAXR shares are trading lower by 3.01% at $41.50 in the premarket session on the last check Thursday.