Monday November 18, 2019 0 comments
WESTMINSTER -- Maxar Technologies Inc. (NYSE: MAXR) (TSX:MAXR) announced the pricing of $1 billion in aggregate principal amount of 9.75% senior secured notes due 2023 issued by SSL Robotics LLC, its wholly-owned subsidiary.
The notes were offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), the company said.
The notes will have an interest rate of 9.75% per annum and will be issued at a price equal to 98% of their face value.
The closing of the sale of the notes, which is subject to customary conditions, is expected to occur on or about Dec. 2.
Proceeds from the notes will be held in escrow until the closing of the company’s previously announced Palo Alto real estate sale. Upon closing of the real estate sale, Maxar will assume SSL Robotics LLC’s obligations under the notes, and the notes will be senior, first-priority secured obligations of the company and guaranteed on a senior, first-priority secured basis by Maxar subsidiaries that are guarantors under its existing syndicated credit facility.
Maxar said it will not assume any obligations under the notes unless the closing of the Palo Alto real estate sale occurs.
Upon release from escrow, Maxar said proceeds from the notes are expected to be used to repay all of the borrowings that were outstanding as of Sept. 30, 2019 under the company’s revolving credit facility, and term loans A-1 and A-2, each under the company’s existing syndicated credit facility, and to pay certain fees and expenses related to the offering of the notes, the use of proceeds therefrom, and an amendment of the syndicated credit facility.
Maxar said it intends to use any remaining proceeds for working capital needs, capital expenditures and other general corporate purposes.
The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act.