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28 June 2012

Elizabeth Harrison, Q.C. Acts for MDA in US$875M Purchase of U.S. Satellite Provider

Senior Partner, Elizabeth Harrison, Q.C. acted for MacDonald, Dettwiler, and Associates Ltd. (TSX: MDA) in connection with the entering into of a definitive agreement for the purchase of the satellite manufacturing business of Loral Space & Communications Inc. (NASDAQ: LORL) for US$875 million. MDA will finance the transaction with cash on hand, a three-year note payable for US$101 million, and approximately US$500 million of borrowings under a new $1.1 billion fully committed and underwritten credit facility from RBC Capital Markets.

The business to be purchased is a global market leading provider of commercial communications satellites, serving a global customer base and having a U.S.-based workforce of 3,200 highly skilled employees, and over one million square feet of state-of-the-art facilities in Palo Alto, California. The transaction, MDA’s biggest acquisition to date, transforms MDA into a major player in commercial communications and provides the company with a stronger presence in the U.S. market.

MDA provides advanced information solutions that capture and process data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide. The organization is focused on information solutions for the Surveillance and Intelligence sector and the Communications sector. In addition, the company conducts a broad range of customer-funded Advanced Technology development for various other market sectors.

The Farris team was led by Elizabeth Harrison, Q.C. and included partners Maria McKenzie (banking) and David Selley (regulatory), and associates Bo Rothstein, Thierry Keable and Kyle Miller.

A copy of MDA’s detailed press release can be found here.

Some relevant media articles can be found at the following links:

http://business.financialpost.com/2012/06/27/mda-buys-california-satellite-company-in-game-changing-transaction/

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/with-875-million-deal-macdonald-dettwiler-eyes-us-contracts/article4374546/

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