BUZZ-MDA Space descends after share offering for satellites deal

Bank of Montreal
Royal Bank of Canada
MDA Space Ltd

Bank of Montreal

BMO

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Royal Bank of Canada

RY

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MDA Space Ltd

MDA

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** U.S.-listed shares of Canadian space tech co MDA Space MDA.N down 7.6% post-market to $35.72 after acquisition-related equity raise news

** MDA announces bought deal offering of 20 mln shares at $35.60 for $712 mln gross proceeds

** Offering price represents 7.9% discount to U.S. shares last sale of $38.67

** MDA to use net proceeds to fund concurrently announced acquisition of approx 70% interest in Collecte Localisation Satellites (CLS) for about €567 mln (C$920 mln)

** The Centre national d'études spatiales (CNES), the French space agency, to retain approx 30% interest in CLS

** CLS expected to generate about €286 mln (C$465 mln) of rev in 2026, supported by more than 14,000 customers across roughly 150 countries, MDA says

** BMO and RBC joint lead bookrunners for equity offering; JP Morgan, Scotiabank and BofA joint active bookrunners

** MDA's U.S. shares, which fell 2.2% on Weds, have roughly doubled YTD