Richmond, BC - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX: MDA), a global communications and information company, is pleased to announce that it has reached an agreement with a syndicate of underwriters (the "Underwriters") led by RBC Capital Markets, BMO Capital Markets and TD Securities pursuant to which MDA has agreed to issue, on a "bought deal" basis, 3,605,000 MDA common shares (the "Common Shares") at $69.40 per Common Share for gross proceeds of approximately $250 million (the "Offering"). The Company has also granted the Underwriters an over-allotment option to purchase up to an additional 540,750 Common Shares on the same terms and conditions, exercisable in whole or in part at any time following closing of the Offering for a period of 30 days. The net proceeds of this Offering will be used to reduce outstanding bank indebtedness, providing additional capital capacity to support future growth opportunities.
Closing of the Offering is expected to occur on or about March 27, 2013. The closing is also subject to certain other conditions including, but not limited to, the receipt of all necessary approvals, including approval of the Toronto Stock Exchange.
Further Information on the Offering
The Common Shares will be offered by MDA under a short form prospectus to be filed in each of the provinces of Canada.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of MDA in the United States. The Common Shares described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States or for the account or for the benefit of a U.S. person absent registration or an exemption from registration.
MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide.
MDA's business is focused on markets and customers with strong repeat business potential. In addition, the Company conducts a significant amount of advanced technology development.
MDA's well-established global customer base is served by more than 4,500 employees operating from 11 offices located in the United States, Canada, and internationally.
The Company's common shares trade under the symbol TSX:MDA.
This press release contains "forward-looking statements", within the definition contained in the applicable Canadian securities legislation, concerning the use of proceeds of the Offering. Any such forward-looking statements are based on MDA's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. The risks that could cause actual results to differ from current expectations include, but are not necessarily limited to: changes in government priorities, funding levels, contracts and regulations; failure of third parties and subcontractors; risks associated with the design and operation of satellites and provision of satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance; failure to anticipate changes in technology, technical standards and product offerings or comply with the requisite standards and failure of systems to meet performance requirements; and other risks, including litigation. The foregoing list of important factors is not exhaustive. MDA cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.
For additional information with respect to certain of these risks or factors, plus additional risks or factors, reference should be made to the Company's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities, which are available online under the Company's profile at www.sedar.com or on the Company's website at www.mdacorporation.com. The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.