S&P assigns Maxar loan, notes B

S&P said it assigned B ratings to Maxar Technologies Inc.'s planned $1.5 billion term loan due 2029 and $500 million of senior secured notes due 2030. The recovery rating is 3, which indicates meaningful (50%-70%; rounded estimate: 60%) recovery in default.

Maxar will use the proceeds to repay its term loan due 2024 and notes due 2023. Both are also rated B with 3 recovery ratings.

“The new notes will likely have a lower coupon, which will modestly reduce the company's interest expense. The company is also replacing its existing $500 million revolver with a new $500 million revolver, extending the maturity date to 2027,” S&P said in a press release.

The outlook is positive.

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