By Paul A. Harris
Portland, Ore., June 9 – Maxar Technologies Inc. priced a $500 million issue of five-year senior secured notes (B2/B) at par to yield 7¾% on Thursday, according to market sources.
The yield printed in the middle of yield talk in the 7¾% area. Initial guidance was in the mid-to-high 7% area.
The deal was heard to be playing to $840 million of demand, a sellside source said.
The notes become callable on June 15, 2024 at 103.875.
In a document change, the issuer relinquished its option to redeem 10% of the notes annually at 103 during the non-call period.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were 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.
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.
| Issuer: | Maxar Technologies Inc.
|
| Amount: | $500 million
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| Issue: | Senior secured notes
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| Maturity: | June 15, 2027
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | 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
|
| Coupon: | 7¾%
|
| Price: | Par
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| Yield: | 7¾%
|
| Spread: | 467 bps
|
| First call: | June 15, 2024 at 103.875
|
| Trade date: | June 9
|
| Settlement date: | June 14
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| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% area
|
| Marketing: | Roadshow
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