Skip to content

Satellite maker Maxar Technologies Inc. (NYSE/TSX: MAXR) plans to sell $400 million in new shares of common stock in the company to pay down debt.

In a statement Monday afternoon, the Westminster company said the proceeds would be used to pay down $150 million in long-term debt that comes due in 2023 at an interest rate of 9.75%, while the other $250 million would be used for general corporate purposes.

The offering’s underwriters also have the option to buy up to $60 million in new stock at their discretion.

The new move comes after a 2020 that Maxar largely dedicated to paying down its enormous long-term debt load. The company had more than $2.94 billion in obligations at the end of 2019, according to its latest annual report with the U.S. Securities and Exchange Commission. It slashed $523 million during 2020 through the sale of its Canadian subsidiary to a group of private-equity firms.

Buying out the 2023 notes would leave the company with about $2.27 billion in long-term debts on its books.

Maxar has not priced the new shares. If issued at the company’s last closing price of $47.84 per share, the sale would add just more than 8.36 million to its approximately 61.33 million shares outstanding.

© 2021 BizWest Media LLC 

Join the Conversation

We invite you to use our commenting platform to engage in insightful conversations about issues in our community. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable to us, and to disclose any information necessary to satisfy the law, regulation, or government request. We might permanently block any user who abuses these conditions.