Benzinga | Mar 18, 2021 07:01AM EDT

Maxar Raises $400M Via Secondary Offering For Debt Financing

Space technology company Maxar Technologies Inc (NYSE: 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.