CPE News (4/7/2021) – MDA Ltd. (TSX: MDA) has completed previously announced initial public offering (IPO), issuing 28,571,500 Common Shares at a price of $14.00 per Common Share for gross proceed to MDA of $400,001,000.
MDA’s Common Shares will commence trading on the Toronto Stock Exchange (TSX) under the symbol “MDA.”
MDA will have 114,951,656 Common Shares issued and outstanding immediately following closing, with an effective post-IPO valuation of $1.609 billion (non-dilutive).
EdgePoint Investment Group Inc. will beneficially own 12,500,000 common shares (10.9%).
MDA directors (Andrew Lapham, Anthony Pagano, Brendan Paddick, Darren Farber, Richard Florizone, Jim Balsillie, John Risley, Jill Smith, James Stavridis, Michael Greenley (CEO of MDA), Yaprak Baltacioglu) and executive officers (Vito Culmone, CFO, Amer Khouri, VP), as a group, will beneficially own 27,120,316 Common Shares, representing approximately 23.59% of the Common Shares outstanding.
Brampton, Ontario based MDA is one of the most advanced technology and service providers to the global space industry. Across its three business areas, Geointelligence, Robotics & Space Operations, and Satellite Systems, MDA serves nearly every sector of the rapidly growing space economy, with mission expertise and technology tailored to new space applications.
In April 2020, a consortium of investors led by Northern Private Capital Ltd, a private equity fund co-led by Risley and Lapham, acquired MDA from Maxar Technologies Inc for $1 billion. The business acquired included the historical Canadian assets of MDA (MacDonald, Dettwiler and Associates Ltd.) and excluded Space Systems/Loral, LLC, which continues to operate as a wholly owned subsidiary of Maxar.
As part of the transaction, MDA issued 483,720,000 shares priced at $1.00 to the investors for an equity investment of $483.72 million. Those shares had been consolidated 6-to-1 to 80,620,000 Common Shares, as part of pre-IPO organization. The investors stake is valued at approximately $1.129 billion at the IPO price.
As of December 31, 2020, MDA had approximately 2,000 employees in Canada, the United States and internationally.
Over the next five years, MDA expects to invest over $600 million in technology development and hire an additional 400 engineers to support its growth strategies.
photo credit: MDA
News Release
MDA Ltd. Completes Initial Public Offering
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
BRAMPTON, ON, April 7, 2021 /CNW/ – MDA Ltd. (“MDA” or the “Company”), a leading provider of advanced technology and services to the burgeoning global space industry, today announced the successful closing of its previously announced initial public offering of common shares (the “Common Shares”) of the Company (the “Offering”). Pursuant to the Offering, MDA issued 28,571,500 Common Shares at a price of $14.00 per Common Share for gross proceeds to the Company of approximately $400 million.
The Common Shares are listed on the Toronto Stock Exchange under the symbol “MDA”.
The Offering was made through a syndicate of underwriters led by BMO Capital Markets, Morgan Stanley Canada Limited and Scotiabank, as joint bookrunners, with Barclays Capital Canada Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., CIBC World Markets Inc., National Bank Financial Inc. and Stifel Nicolaus Canada Inc., as underwriters.
Goodmans LLP and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to the Company, and Osler, Hoskin & Harcourt LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to the underwriters.
The Company has granted to the underwriters an option, exercisable, in whole or in part, at any time and from time to time for a period of 30 days after closing of the Offering, to purchase from the Company up to 4,285,725 Common Shares (representing 15% of the number of Common Shares sold in the base offering) at a price of $14.00 per Common Share, for the purpose of covering the underwriters’ over-allocation position, if any.
No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Copies of MDA’s final prospectus are available on SEDAR at www.sedar.com.
The securities have not been and will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”), as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States, except to Qualified Institutional Buyers (as defined in Rule 144A of the U.S. Securities Act). This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
QUOTES
“Today marks the beginning of an important chapter for MDA. With the rapid expansion of the global space economy over the next ten years, our world-leading expertise and capabilities are well aligned with the projected high growth sectors, such as space exploration, on-orbit servicing, space-based communications and Earth observation. We have the agility of a new space company coupled with an impressive track record that makes us a partner of choice in the emerging commercial space market.” ~ Mike Greenley, Chief Executive Officer, MDA
LINKS
www.mda.space
SOCIAL MEDIA
Twitter: www.twitter.com/MDA_space
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LinkedIn: www.linkedin.com/company/mdaspace
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ABOUT MDA
Serving the world from its Canadian home and global offices, MDA is an international space mission partner and a robotics, satellite systems and geointelligence pioneer with a 50-year story of firsts on and above the Earth. With over 2,000 employees across Canada, the US and the UK, MDA is leading the charge towards viable Moon colonies, enhanced Earth observation, communication in a hyper-connected world, and more. With a track record of making space ambitions come true, MDA enables highly skilled people to continually push boundaries, tackle big challenges, and imagine solutions that inspire and endure to change the world for the better, on the ground and in the stars.
SOURCE MDA Ltd.
For further information: MEDIA CONTACT, Leslie Swartman, leslie.swartman@mda.space, 613-608-4845