Maxar Announces Sale Of MDA - Quick Facts

(RTTNews) - Maxar Technologies (MAXR, MAXR.TO) has agreed to sell MDA to a consortium of financial sponsors led by Northern Private Capital, for C$1 billion. The deal includes all of MDA's Canadian businesses, ground stations, radar satellite products, robotics, defense, and satellite components. Maxar said the deal combined with the recently completed sale of real estate in Palo Alto reduces the company's overall debt by more than $1 billion and significantly reduces leverage ratio.

"The loss of future cash flow from MDA will be significantly offset by interest savings from the reduction of debt. We expect the net effect of all these factors to only reduce our prior guidance for adjusted EBITDA and free cash flow generation in the 2022 to 2023 time period by approximately $50 million," said Biggs Porter, Maxar CFO.

Maxar expects to use proceeds to reduce leverage and improve capital structure to prioritize investments for growth in its core areas of Earth Intelligence and Space Infrastructure.