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      Maxar Technologies Inc (MAXR) sells $400M worth of discounted stock Via Secondary Offering For Working Capital - Stocks Telegraph

      By Shan Zee

      Published on

      March 19, 2021

      9:44 AM UTC

      Last Updated on

      August 6, 2021

      4:08 AM UTC

      Maxar Technologies Inc (MAXR) sells $400M worth of discounted stock Via Secondary Offering For Working Capital - Stocks Telegraph

      Maxar Technologies is a space technology company specializing in producing integrated space infrastructure and satellite-related products. Space technology company Maxar Technologies Inc (NYSE: MAXR) priced the priorreported$400 million worth of shares at a discounted price of $40 per share for debt financing for the company.

      The offer has an estimated6.50% discount vs. the last closing price at $42.79 and has granted underwriters certain perks such as givingthem 30 days to buy additional shares worth $60M. However,the company’s top executive officers agreed to customary contractual assurance with the underwriters purchasing the stocks.

      Is Maxar Technologies Inc. (NYSE: MAXR) Worth Buying Right Now?

       MAXR shares plummeted by 3% at $41.50 in the premarket session as of today. However, a 353% gain since last year has adhered to investor interest. MAXR revenue increasedapproximately 3% for the year, yet profits increased three times, bringing diluted share value to $4.99.

      This happened as MAXR planned on decreasing its debt load for “sustainable growth” of the company, with $2.4B being removed from a total of $2.9B.

      Furthermore, with a board consisting of two ex CIA officers, two former officers of the US Air Force,and the CEO being a navy veteran himself, the investors are more than pleased with the top executives having military and political ties.

      MAXR will also be paying a cash dividend of $0.01 per share by March 31, 2021. Investors who bought MAXR before the ex-dividend payment will receive the dividend. Hence this is the 5th quarter MAXR will be paying the same premium depicting a healthy cash flow of the company.

      Conclusion

      MAXR offered a better-than-expected outlook for the current quarter and anticipated sales and profits to grow for the entire year after gaining a substantial financial surplus of $400M as well as successfully eradicating debt of $2.4B. Furthermore, Military and political ties have shown to further peak investor interest for the company.

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