MDA Space plans C250 million senior unsecured note issue maturing 2030

by Clarence Oxford
Los Angeles CA (SPX) Dec 05, 2025

MDA Space Ltd. has arranged a private placement of C$250 million in 7.00 percent senior unsecured notes due 2030 under an underwriting agreement. The company expects the offering to close around December 23, 2025, subject to customary closing conditions. The notes will be issued at C$1,000 for each C$1,000 in principal.

The notes will rank equally in right of payment with all existing and future senior unsecured debt of MDA Space and will be guaranteed by certain subsidiaries. Interest will accrue at 7.00 percent per year, payable semi-annually in arrears on June 23 and December 23, starting June 23, 2026. The structure leaves existing secured facilities in place while adding unsecured term funding.

MDA Space subsidiary Neptune Operations Ltd. has entered into a second Amended and Restated Credit Agreement dated November 25, 2025, with The Bank of Nova Scotia as administrative agent and a syndicate of lenders. The amended facility permits the new note offering, adds a C$150 million accordion feature at the lenders discretion that could lift total credit facilities to C$850 million, and extends the facility maturity to November 25, 2030. An accelerated maturity provision could apply if the notes are not refinanced at least six months before that date.

The company plans to apply the net proceeds from the note sale to refinance outstanding debt under the amended credit agreement. Management positions the refinancing as a shift in the capital structure that increases financial flexibility and liquidity as the business targets additional growth. "We are pleased with the strong market demand for our notes. This new unsecured note offering and the refinancing of our existing senior facility reflects a strategic and timely evolution of the MDA Space capital structure. The refinancing provides flexibility and liquidity as we continue to pursue market growth opportunities," said Guillaume Lavoie, Chief Financial Officer of MDA Space.

The notes are being marketed through a syndicate of underwriters led by RBC Capital Markets, BMO Capital Markets and Scotiabank. In Canada, they are offered on a private placement basis to accredited investors relying on prospectus exemptions under applicable securities laws. In the United States, the notes are available only to qualified institutional buyers under Rule 144A of the U.S. Securities Act of 1933, and to investors outside the United States in offshore transactions under Regulation S.

The securities have not been registered under the U.S. Securities Act or any state securities laws, and the company states the news release does not represent an offer to sell or a solicitation of an offer to buy the notes in any jurisdiction where such activity would be unlawful. MDA Space will file a copy of the amended and restated credit agreement with the relevant securities commission, and it will be accessible on the companys profile on the SEDAR+ system.