Maxar Technologies Ltd (NYSE:MAXR) disclosed that it has received approval from bank lenders to amend credit deal. The company also confirmed it is continuing to explore strategic alternatives for its GEO communications satellite line of business.
A news release put out Friday by the Westminster, Colorado-based firm showed that the Amended Agreement provides the Company additional financial flexibility with regard to its consolidated debt leverage ratio.
The Company expects to stay within its financial covenants through the maturity date of the credit facility.
Maxar management has targeted next Monday, New Year’s Eve, to announce a final decision regarding the strategic direction of its GEO communications satellite business.
The Company expects to make a decision on the future strategic direction of the GEO communications satellite business in due course and will provide an update to shareholders in early 2019. Further updates will be provided as conditions warrant.
The Company continues to take actions to right size its GEO business footprint and workforce. On December 6, Maxar announced that it has completed the sale of SSL's Building 1 facility in Palo Alto, California, for $70 million in cash.
The Company will use the net proceeds from this transaction to pay down debt. SSL also continues to be actively engaged with its customers to procure additional GEO satellite orders.
Maxar Technologies, to quote its website, "is at the nexus of the new space economy, developing and sustaining the infrastructure and delivering the information, services, systems that unlock the promise of space for commercial and government markets."
Its shares opened Monday down 15 cents, or 1.3%, to $11.04
