MDA Space descends after share offering for satellites deal
BUZZ-MDA Space descends after share offering for satellites deal ** 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
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))