Maxar sets roadshow for $500 million five-year secured notes; initial talk mid-to-high 7% area

By Paul A. Harris

Portland, Ore., June 1 – Maxar Technologies Inc. plans to kick off its $500 million offering of five-year senior secured notes (B2/B) on an investor call scheduled to begin at 11 a.m. ET on Thursday, according to market sources.

The deal will run a Monday to Wednesday roadshow in the week ahead.

Initial guidance has the notes coming to yield in the mid-to-high 7% area, a sellside source said.

BofA Securities Inc. is the left bookrunner. RBC Capital Markets LLC, Barclays, BMO Capital Markets Corp., J.P. Morgan Securities LLC, Capital One Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citizens Capital Markets Inc. and ING Financial Markets LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period. They also feature a 101% poison put.

The Westminster, Colo.-based space technology company plans to use the proceeds plus a new term loan, a new revolver and cash on hand to redeem all of its outstanding 9¾% senior secured notes due 2023.

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