Westminster, CO-based Maxar Technologies announced on April 8 that it has closed the sale of MDA, previously a wholly owned subsidiary of the company, to a consortium of investors led by Northern Private Capital for CAD$1 billion. Net proceeds, including customary adjustments, and after application of currency hedges related to the transaction is expected to be approximately US$729 million.
“The closing of the MDA transaction concludes the near-term reshaping of our balance sheet and business portfolio,” said Dan Jablonsky, Maxar CEO. “Going forward, our growth strategy remains focused on providing leading capabilities in Earth Intelligence and Space Infrastructure, including geospatial data, data analytics and spacecraft and robotics that are well aligned with the strategic priorities of our government and commercial customers.”
“The closing of this transaction — when combined with the recently completed sale of real estate in Palo Alto — reduces Maxar’s overall net debt by roughly $1 billion and significantly improves the company’s leverage ratio,” said Biggs Porter, Maxar CFO. “Importantly, we believe these actions provide Maxar increased flexibility, range and focus to drive revenue, profit and cash flow growth over the next several years. We also have good liquidity with only $15 million drawn on our $500 million credit facility as of March 31, 2020.”
Source: Maxar
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