The Daily Broadcast: MDA Space Secures $600M for U.S. Acquisition

The Daily Broadcast: MDA Space Secures $600M for U.S. Acquisition

MDA Space Finances Cross-Border Expansion

MDA Space has priced $600 million in senior unsecured notes, funding the latest step in an ambitious U.S. expansion strategy. The notes carry a 6.50 per cent interest rate, mature in 2033, were issued at par, and are expected to close on Aug. 5 through a syndicate led by RBC Capital Markets, BMO Capital Markets, and Scotiabank.

The offering funds MDA’s agreement to purchase Colorado-based Blue Canyon Technologies (BCT) for US$620 million. The move expands MDA’s manufacturing footprint and deepens its access to the U.S. defence and government market according to the company’s statement last month.

The notes are one half of a dual-track financing strategy. Earlier this summer — on July 8 — MDA announced it would acquire a 70 per cent stake in French Earth observation data firm Collecte Localisation Satellites (CLS) for approximately $920 million. That deal was funded through an upsized bought deal of common shares, which generated roughly US$819 million in gross proceeds. Debt, rather than equity, was chosen for BCT to avoid further diluting existing shareholders.

S&P Global Ratings assigned a speculative-grade ‘B’ rating to the new notes, noting that MDA’s adjusted debt-to-EBITDA ratio is expected to stabilise around 3x by 2027. That outlook leans on the company’s multi-billion dollar backlog of government and commercial contracts, which is projected to cover the approximately $39 million in annual interest payments the new securities will require.

Astronaut Williams Returns After Canadarm2 Spacewalk

NASA astronaut Chris Williams grins at the camera while holding a walkie-talkie up to his ear. He's wearing a blue and white spacesuit that has various patches on the chest and left arm. His helmet… | Source: NASA

On July 26, NASA astronaut Chris Williams landed in Kazakhstan alongside Roscosmos cosmonauts Sergey Kud-Sverchkov and Sergei Mikaev, closing out a 241-day first mission aboard the International Space Station as an Expedition 73/74 flight engineer.

The trio completed 3,856 orbits of the Earth over a journey of more than 102 million miles. During their time aboard the station they saw the arrival of six visiting spacecraft and the departure of eight.

For Canada’s program, the headline event was a pair of spacewalks Williams performed: one to prepare the station’s power system for upgrades, the other to replace a faulty joint on the Canadarm2 robotic arm. He also supported research into new cancer treatments and in-space semiconductor crystal manufacturing aimed at the commercial space economy.

Williams will recap his mission at a post-flight news conference scheduled for 2:45 p.m. EDT on Tuesday, Aug. 4, from NASA’s Johnson Space Center in Houston.

ESA Shares New Image of Ariane 6’s Maiden Flight

Vertical liftoff as Ariane 6 takes flight for the first time | Source: ESA

ESA has released a new photograph documenting the inaugural launch of Ariane 6 on July 9, 2024 — mission VA262 — showing the rocket lifting vertically from the launch site in French Guiana.

Europe’s newest heavy-lift launcher pairs an upgraded main stage with a choice of either two or four powerful boosters and a new restartable upper stage designed to deploy multiple payloads into different orbits on a single flight. That upper stage is engineered to deorbit itself at the end of its mission. The rocket is marketed as providing greater flexibility at lower cost than earlier Ariane models, and the launch image was also selected for inclusion in an eight-stamp collector’s set being issued by La Poste de Guyane.

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