Maxar Technologies Announces Sale of $150 Million Senior Secured Notes and Repurchase of Existing Notes

Maxar Technologies Inc. (NYSE:MAXR) (TSX:MAXR), a trusted partner and innovator in Earth Intelligence and Space Infrastructure, has entered into a purchase agreement with respect to the sale of $150 million aggregate principal amount of 7.54% senior secured notes due 2027 (the “Notes”). The Notes were offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes will have an interest rate of 7.54% per annum and will be issued at a price equal to 98.25% of their face value.

The closing of the sale of the Notes, which is subject to customary conditions, is expected to occur on or about June 25, 2020. The Notes will be senior, first-priority secured obligations of the Company initially guaranteed on a senior, first-priority secured basis by the Company’s subsidiaries that are guarantors under its existing syndicated credit facility and its 9.750% Senior Secured Notes due 2023.

Proceeds from the Notes are expected to be used for general corporate purposes, including to finance the purchase price payable upon our exercise of an option to purchase all the outstanding equity interests not currently owned by the Company or its subsidiaries of Vricon, Inc., the holding company for a joint venture in which the Company holds 50% (the “Vricon Acquisition”). Consummation of this offering is not contingent on completion of the Vricon Acquisition and if the Vricon Acquisition is not consummated, the Company may use the proceeds for any other general corporate purposes.

The Notes and the guarantees will not be registered under the U.S. Securities Act of 1933, as amended (“Securities Act”), or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities, and no offer, solicitation or sale will be made in any jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale is unlawful. Any offers of the Notes will be made only by means of a private offering memorandum. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.