By Paul A. Harris
Portland, Ore., Nov. 15 – SSL Robotics LLC (escrow issuer), a wholly owned subsidiary of Maxar Technologies Inc., priced a downsized $1 billion issue of 9¾% four-year senior secured notes (B2/B) at 98 to yield 10.363% on Friday, according to a syndicate source.
The issue size decreased from $1.25 billion.
The issue price came on top of price talk. The coupon printed at the wide end of the 9½% to 9¾% coupon talk. The yield came near the wide end of the 10.11% to 10.37% yield talk. Earlier talk was in the 9% area.
Proceeds from the notes sale will be put into escrow pending a specified asset sale. In the event the sale in not consummated by 5 p.m. ET on Dec. 31, 2019, there is a mandatory redemption of the notes at the issue price.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were RBC Capital Markets LLC, BMO Capital Markets Corp., CIBC World Markets, Wells Fargo Securities LLC, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC, NBFM, MUFG, ING Financial Markets LLC, SMBC Nikko Securities America Inc. and Mizuho Securities USA Inc.
The Westminster, Colo.-based space technology company plans to use the proceeds to pay off its revolving credit facility, as well as its A-1 and A-2 term loans, with any remaining proceeds to be used for working capital, capital expenditures and other general corporate purposes.
| Issuer: | SSL Robotics LLC (escrow issuer), a wholly owned subsidiary of Maxar Technologies Inc.
|
| Amount: | $1 billion, decreased from $1.25 billion
|
| Maturity: | Dec. 31, 2023
|
| Securities: | Senior secured notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | RBC Capital Markets LLC, BMO Capital Markets Corp., CIBC World Markets, Wells Fargo Securities LLC, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC, NBFM, MUFG, ING Financial Markets LLC, SMBC Nikko Securities America Inc. and Mizuho Securities USA Inc.
|
| Coupon: | 9¾%
|
| Price: | 98
|
| Yield: | 10.363%
|
| Spread: | 872 bps
|
| Call protection: | Two years
|
| Trade date: | Nov. 15
|
| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9½% to 9¾% coupon at 98 to yield 10.11% to 10.37%, revised from 9% area
|
| Marketing: | Roadshow
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