MDA Space Secures C$250 Million Financing Package to Strengthen Balance Sheet Through 2030

Canadian aerospace firm MDA Space Ltd. (MDA.TO) has moved forward with a significant capital raise, unveiling plans to issue C$250 million in senior unsecured notes carrying a 7% coupon and maturing in 2030. Each note carries a C$1,000 principal value, with settlement anticipated around December 23.

Refinancing Strategy and Debt Restructuring

The primary objective behind this funding round is clear: refinancing existing debt obligations tied to the company’s Credit Agreement. By locking in these terms now, MDA Space is essentially consolidating liabilities and extending visibility on its capital structure through the end of the decade. The notes rank equally with other senior unsecured debt, while select subsidiaries will provide credit guarantees—a common safeguard in such offerings.

RBC Capital Markets, BMO Capital Markets, and Scotiabank are jointly leading the underwriting syndicate, signaling institutional confidence in the aerospace sector’s recovery and MDA Space’s operational trajectory.

Enhanced Credit Flexibility

Beyond the debt issuance itself, MDA Space’s subsidiary Neptune Operations Ltd. finalized a second amended credit facility on November 25, 2025. This refreshed agreement does more than simply permit the current offering—it introduces a C$150 million accordion feature that lenders can activate at their discretion. If fully deployed, total credit capacity could climb to C$850 million, providing substantial financial flexibility for growth initiatives or strategic acquisitions.

Critically, the new credit structure pushes the maturity timeline to November 25, 2030, though an accelerated payoff clause exists: if the notes aren’t refinanced at least six months before maturity, lenders retain the right to trigger early repayment, adding an extra layer of urgency to MDA Space’s medium-term financial planning.

This multi-layered approach—combining fixed-rate debt with expanded credit optionality—demonstrates how aerospace companies are navigating a dynamic capital market environment.