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.
