Maxar to offer $1.25B to refinance debt, revenues decline 5.9% YoY

This story was updated at 3 p.m. with details from Maxar’s earning report.

WESTMINSTER  — In a bid to refinance its existing loans, Maxar Technologies Inc. (NYSE: MAXR) has launched a $1.25 billion fundraiser ahead of releasing its third-quarter earnings today, where the company beat Wall Street sales estimates by $10 million.

The Westminster-based aerospace and satellite-imaging company posted $479 million in revenues for the quarter and a net loss per share of 44 cents per share. Those figures beat Wall Street consensus estimates by $10.36 million and by a 6 cent loss per share, according to Seeking Alpha data.

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While the $479 million figure is about a 6 percent decline from the same period last year, Maxar’s losses fell from $289 million last year to $26 million in the last quarter.

Earlier in the day, Maxar announced plans to use the proceeds to pay off just more than $1.2 billion in syndicated and revolving credit debts. The rest of the funds will be used to cover refinancing fees.

The newly issued debts are to be fully paid back by 2023. The company did not disclose the new debt’s planned interest rate or how much it plans to save by refinancing its debt, but is scheduled to release its Q3 2019 earnings at 3 p.m. Mountain Time Monday.

Maxar had $3.127 billion in total long-term debts at the end of Q2 2019, according to its Q2 balance sheet available from the U.S. Securities and Exchange Commission. The majority of that comes from a $1.97 billion revolving credit line that isn’t due to be affected by the refinancing.

Maxar’s stock rose 11 percent over Monday’s trading period to close at $9.94 per share, but before the company released its earnings.