Maxar launches $1.25B senior note offering

Wednesday November 6, 2019 0 comments Tags: Westminster, Maxar Technologies

WESTMINSTER -- Maxar Technologies (NYSE:MAXR) (TSX:MAXR) announced a private offering of $1.25 billion aggregate principal amount of senior secured notes due in 2023.maxar-logo 

Maxar said the notes will be senior, first-priority secured obligations of the company initially guaranteed on a senior, first-priority secured basis by company subsidiaries that are guarantors under its existing syndicated credit facility.

Maxar said note proceeds 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 and the guarantees have not been and will not be registered under the U.S. Securities Act of 1933, as amended (“Securities Act”), or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements, the company said.

The notes and the guarantees will be offered in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on the exception from registration set forth in Rule 144A under the Securities Act and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

The operations of DigitalGlobe, SSL and Radiant Solutions were unified under the Maxar brand in February; MDA continues to operate as an independent business unit within the Maxar organization.